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Safeguarding Your Family with Insurance

Now that your family is growing and you are responsible for more people, it’s a perfect time to consider some of the insurance protection you need to safeguard everyone.

Preparing today will benefit your family by ensuring everyone has adequate medical coverage and financial coverage in the event of a tragedy. There are also some factors to think about when it comes to homeowners and car insurance, now that you’re building your life with children in California.

Homeowners

Protecting your Bay Area house and your assets is one component of home insurance, but there are other components to consider, too. As a homeowner, you are liable for things that happen on your property, so it’s important to obtain enough coverage to protect you from any potential lawsuits that could arise from people getting injured on your property.

Also, if you’re considering any home improvement projects, alert your insurance company to those improvements if they cost $5,000 or more because you’ll want to update your policy to be insured adequately.

Auto

As your family grows, you’ll probably get to the point that you need a larger vehicle to fit everyone. When you go through this upgrade process, your insurance premiums can change drastically based on the year, make and model of the vehicle you choose. Make sure you research all the possibilities and the impact on your budget.

Also, you’ll want to look into sufficient coverage for all your assets to protect you in case you get into an accident and find yourself party to legal action.

Health

Health insurance policies are complicated when it’s just you, but when you’re trying to determine the best options for your spouse and children, the process can become overwhelming. It’s worth your time to analyze the costs and benefits of any employer-sponsored health care plans available to you and your spouse.

Finding the right plan is paramount as your children are born and grow. For budgetary purposes, you might want to look into health savings accounts or flexible spending accounts that allow you to set aside pre-tax money for various medical and daycare expenses.

Life

When you were single with no children, life insurance likely was one of the last things you needed. Now with a spouse and dependents, you’ll need a strategy that accounts for all of the income you and your spouse earn plus all of the expenses that come with raising your children.

Considering the possibility of death for you and your spouse is never pleasant, but purchasing a life insurance policy that takes care of survivors is vital to long-term planning. You’ll have a choice between whole life insurance and term life insurance. Whole life insurance policies are more expensive, but they build cash value over time. A term life insurance policy is less expensive when you are younger and the premiums increase with age.

No matter the policy you choose, remember you can keep your premiums lower with healthier life choices by quitting smoking, keeping your cholesterol low and losing weight. Also, if you’re an accident-prone driver or engage in risky hobbies that could put you in danger, these factors can lead to higher life insurance premiums.

Structuring your insurance coverage to acquire adequate protection becomes a complicated undertaking for California families. The National Association of Insurance Commissioners offers a wealth of information on all manner of insurance topics for young families. Conduct your research, and then contact a knowledgeable insurance agent who is committed to customizing a plan for you.