• Getting the right protection for your family: Be proactive and get the right kind of health insurance for yourself and your family. The dynamic life that we lead is very unpredictable. And hence buying the right insurance will be a major step.
Make sure you have a good mediclaim policy that safeguards you and your family from rising healthcare expenses. Now, health insurance policies in India have started offering maternity benefits and coverage as well to cover all the prenatal and post-natal expenses along with the child care expenses. Note, such plans cover maternity after a waiting period of three or four years, so plan accordingly.
Though very few health insurance companies in India cover newborns from day one, you can still find out a good health insurance policy for your child. As there is no dearth of mediclaim policies in the market today, carefully compare all policies before choosing one.
Similarly, you need a term insurance cover as well that will take care of your family in case of your sudden demise. The policy will ensure that your loved ones are not in any financial debt even in your absence.
Post arrival of your baby
• Stick to your budget: Though the arrival of a baby brings happiness, it brings with it a lot of expenses as well like health insurance premium, vaccinations,tests, etc. It is, therefore, essential to factor all these expenses while preparing your budget.
• Revisit your financial plan: The new addition to your family means new goals like child’s education, marriage, etc. At this stage, it is necessary to revisit expenses and savings after the birth of your child so that any ‘new’ addition doesn’t hamper your future goals.
• Stay away from lucrative marketing gimmicks: In older times, parents raised their children with limited resources and negligible baby products. However, today,companies have found a way to mint money by enticing parents into buying those baby products which are not even required. They advertise their products in such a way that every parent buys them just because they ‘think’ it is good for their tiny tot. So before spending on any baby product, think twice if it is required or not.
Matter of readiness
You don’t need to sell your house or dip into your retirement fund if you have a concrete plan in place. It is true that kids bring immense joy and pleasure with them. And it is equally true that a kid brings responsibility, for the next 20 or 25 years, or till he/she becomes financially independent.
So, the right time to start investing for your child’s future is when you start thinking about having a family. Your goal should be to build a ladder for your kid gradually.
A systematic approach towards parenthood can go a long way in securing your child’s future. At the same time, apart from money matters, squeeze out some time from your busy schedule and spend it with the apple of your eye. After all, the feeling of being a parent is incredible!