Stacy Kerr, a Manchester-based Sales Manager at a reputed firm, was unable to control her anxiety levels during the second trimester of her pregnancy. She was going through a rough patch trying to maintain work life balance during pregnancy. Despite her doctor’s repeated advice to keep stress and anxiety at bay, Stacy was unable to relax. Consequently, she had a premature delivery.
The newborn baby was very weak and needed to be put in a neonatal intensive care. That was not all, due to low immunity level, the child got infected with whooping cough. Simultaneously, Kerr was also dealing with her post-pregnancy issues. By the time both mother and the child were out of danger and ready to be discharged, the medical bill got too high. Now, even though Kerr had a family plan to reimburse for her hospital bills, there were other expenses that were too much to handle.
The moral of the story is that bringing a new life into this world is quite expensive. According to Liverpool Victoria, a well-known insurance and investment group, the first year of a baby’s life will be an average of £8,500. Therefore, if you are thinking about starting a family, you need to start managing your finances. Doing so will eventually bring down your anxiety levels.
Let’s see how you can do this!
Make Sure that your Employer Provides you a Decent Maternity/Paternity Benefits
If you have been working at your company for about 26 weeks, and your weekly remunerations are more than £95, then you are eligible to get a statutory paternity or maternity pay (SMP). As per this policy, anyone is entitled to have 90% of their weekly payment of six weeks; this is followed by 33 weeks at the lower limit of £123 for a week or 90% of their weekly earnings. For further details, visit the website of Directgov.com.
These policies, however, may differ from one employer to another. Hence, it is advisable to contact your human resource manager to check the company policy. Make sure to read your contract thoroughly. The most important thing to note here is that your employer will want you to pay the sum back if you resign from the organization.
Carefully Plan your Parenthood
People will give you numerous suggestions about how to plan your savings and lead your life, but I will certainly suggest that there is no point in taking risks and worries while you are stepping into the most important phase in your life: Parenthood.
We love to live a carefree life while we are single and have no dependents. But as soon as we become parents, we realize the need for a proper financial planning. When it comes to invest on insurance products we often get to know about life insurance plans, but what is life insurance? Actually, life insurance is one of the best ways to plan your finances during this phase. This is especially essential for those who are going to be parents for the first time. Hence, this is the right time to get a life cover, as being a rookie you need to be extremely cautious.
Now that you know that buying insurance is quite necessary for parents to ensure a secure living for their newborn, the next step would be to choose the right child plan for your child’s future security. A viable option is to take a life insurance policy that offers tax-free income annually and not just a lump-sum amount. This is called family income benefit.
There are several plans for new parents such as Aviva new parents’ free life insurance for up to £10,000. You need to take this plan before your baby turns six months old, and this plan offers coverage till the baby turns one.
Do Mothers Need a Life Insurance? The Answer is a Resounding Yes!
The Working Mother
One of the most important reasons to buy life insurance is to get income replacement. If the policyholder passes away all of a sudden, then a term life insurance policy offers death benefit to the beneficiaries of the policyholder.
Irrespective of the job, every mother being the caretaker of the child needs to buy a life insurance policy. Moreover, it doesn’t make sense that homemakers do not need any insurance cover as they do not go out to work. This is one of the most prevalent misconceptions lingering around.
We tend to overlook the amount of work homemakers have to do every day. Supposedly, if a homemaker passes away, it would be difficult for the father to handle both the worlds. Hence, if we equate the hours of work done by a homemaker into a monetary figure, it will result in a significant amount.
While buying insurance, make sure that you get a long-term coverage that ends till your child goes to the college. Moreover, you can make sure that the income coverage must last till both the parents are able to pay the child’s college fees.
The Single Mother
I have been reiterating the fact that there is a grave need for life insurance for mothers. In case of single mothers, getting a life cover is must. Generally, in case of the unfortunate death of any one parent, the surviving parent takes care of the child. But, when it comes to a single parent, all the responsibility is on that parent only.
This, therefore, obliterates all the second thoughts that every single mother has, before opting for a life insurance policy.
What Makes Term Insurance the Most Viable Option?
Term insurance is the best deal for all the mothers, no matter whether she is single, working or a homemaker. Every mother must have a life insurance, and as purchasing insurance has become so convenient, you must not have any reason to shirk off. Buying a life insurance has now become very easy and time saving.
One of the prime benefits of buying an insurance policy for mothers is that it gives them financial security and takes away the stress of responsibility. Moreover, if the mother passes away unexpectedly, the child will not get into a sudden financial crisis.
Likewise, buying a child plan for neonates is to ensure that the parents can bear the cost of all the special care required by the baby.
Thus, all these reasons make insurance a prime requisite for parents-to-be or newbie parents.
I hope this piece of information helps you think more rationally and bring out a parents out of you.
This is your first step towards being a responsible parent, do not miss it.