No one likes to talk about insurance. It’s boring. It’s morbid. And it’s an expense that can often feel like a waste of money, since your real hope is that you never actually need the thing you’re paying for.
But for new parents, insurance is one of the best and most cost-effective ways to provide your family with the kind of financial security it deserves.
So here’s what I want to do: I want to give you a comprehensive resource that makes it as easy as possible to get the insurance you need and avoid the insurance you don’t.
That’s what this post is meant to be.
This post covers the four types of insurance that all new parents should have, with an explanation of the following for each one:
- What it protects
- Who needs it
- What to watch out for
- Where to get it
- Additional resources with even more detail to lead you through the entire process
What it protects: Health insurance primarily protects you against really big medical bills that would be difficult to handle on your own, such as a hospital stay or the ongoing costs associated with chronic conditions like cancer or diabetes.
Who needs it: Most people are probably always going to have the need for at least some kind of health insurance. Whether you’re single or married with children, old or young, the simple truth is that medical bills always have the potential to be incredibly high, and protecting yourself against those big bills is likely to be a good idea.
What to watch out for: Overpaying for coverage of routine care. Remember that the big risk you’re protecting against here is the cost of major medical issues, not the cost of routine care like annual checkups.
If you’re in relatively good health, it may make sense to look into a high-deductible plan that ONLY covers those big risks and allows you to pay for routine doctor visits out-of-pocket. When combined with something like a flex plan at work, or even better a health savings account on your own, that can add up to some huge savings.
Where you can get it: Hopefully your employer offers some kind of coverage, and if you’re married you should also check out your spouse’s options to make sure you choose the best plan for your family’s needs.
If you don’t have employer coverage, healthcare.gov is likely your best best. Otherwise, you can look for a local independent health insurance who can help you understand the options available to you and make the right decision for you and your…