HAVING A CHILD
Preparing for a new child
Will your family soon have a new addition?
Here are a few things to think about to protect your loved ones against the unexpected and prepare for your new arrival.
Reassessing your insurance coverage
The arrival of a new child is without a doubt one of the best things that can happen to you. You will be thrust into a new adventure that will fill you with happiness! Before your child gets here, think about your family’s peace of mind, review your needs and your financial planning and make sure you are ready to face anything that happens.
Life insurance - It enables you to guarantee your family’s financial security should something bad happen. If you already have life insurance, consider increasing your coverage to allow your family to maintain its lifestyle.
Disability insurance - If you or your spouse should become disabled as a result of an accident or an illness, disability insurance will provide coverage for the financial consequences of any such disability. It will allow you to receive salary replacement income and maintain your family’s lifestyle. You should also consider having a notarized or witnessed power of attorney.
Critical illness insurance - Paid in a lump-sum payment, critical illness insurance will help you meet your financial obligations and pay any fees related to your medical condition. Thus, you can focus on your recovery.
Group Insurance - If you are covered under a group insurance plan, you may want your spouse and new child to benefit from this plan. By adding them to your plan, they will have medical and dental care. Talk to your plan administrator for more information.
Insurance coverage for your child
Life insurance - Take advantage of your child’s young age and excellent health to get coverage that will follow him or her up to adulthood and beyond. You will be able to cover costs related to death at a young age and guarantee your child’s insurability in the future. This coverage is also very affordable, as you take it out at the beginning of your child’s life.
Critical illness insurance - Paid in a lump-sum, critical illness insurance will allow you to take a temporary leave of absence to take care of your child should he or she become seriously ill. Did you know that we offer the Kiddy Plan, for children between the ages of two and five, at no cost, for a period of 12 months?
Accident Insurance - Choose accident insurance coverage and protect your new loved one 24/7. Enrolment is quick and easy, without a medical questionnaire or medical exam. This inexpensive insurance coverage will provide indemnities in the event of an accident. These will help you face the unexpected and cover unexpected costs. The Peek-A-Boo Plan for newborns is provided for free for a period of 12 months.
In the event of disability or death
If you want to save for your child’s postsecondary education, a registered education savings plan (RRSP) is the preferred financial vehicle. Investment income grows tax-free. An RESP will enable you to pay your child’s tuition and other costs related to his or her education. You can also retain control of your money by deciding how the money will be used when it is withdrawn.
Start early, take advantage of government grants as soon as you enrol and grow your savings tax-free. Depending on your province of residence, you can obtain more than $10,000 in grants.
Changing your beneficiary
With this new person in your life, you should also think about checking the designated beneficiaries on all your individual and group insurance and savings products. Thus, should something bad happen, you can make sure that your family can meet your shared financial obligations worry-free and get through this difficult phase.
Go to Changing your beneficiary to see the steps to follow to change or modify your beneficiary.
Need personalized advice?
A financial advisor can explain each in detail and help you to choose the right investments to reach your savings goals.