22 September 2016
Preparing for baby’s arrival – family protection
Is your baby on its way, or is the family getting bigger with a new baby brother or sister? Congratulations! Are you now wondering how to protect this little human being who is entirely dependent on you? Luckily, there is insurance to help you.
When we think about protection, we think first about medical cover. When planning a pregnancy, in addition to your basic cover, you can subscribe to supplementary medical insurance, which will cover extra issues for the mother and baby during childbirth and maternity leave. You can subscribe to the same kind of insurance for your child once it is born. This will allow you to provide the best care and to focus your energy on your baby, without being worried about how to cover those expenses.
Household and family
Consider also choosing the appropriate protection for your home. Welcoming a baby will change your everyday life. You could easily forget to turn off the gas or the water tap when going out. Such an incident could be dramatic, but a good insurance policy would allow you to get back on your feet faster at limited expense. There are also family policies which cover you in case your child (or a member of your family) causes material damage or physical harm to a third party.
Although holidays are not the number one priority when the baby arrives, you will be delighted to have a family break and show the world to your child. Before any travel, check your cover for unexpected situations and make the necessary arrangements before your departure (cancellation insurance, travel accidents, personal assistance, etc.). It is not always necessary to subscribe to a separate travel insurance policy: some credit cards (often labelled “Gold” or “Platinum”) include this under certain conditions.
What would happen if you were not here anymore?
This is the last thing you want to think about, given you have just welcomed a child, but you need to consider it. In the tragic event that you and/or your partner were to disappear, what would happen to your baby?
The first decision to make is: Who will take care of it? Parents, brother/sister, friends? Be clear about who you could trust with your child and get confirmation from those persons. Then take care of the necessary paperwork so that your decision cannot be revoked after you have gone.
The next step is not to leave any outstanding debt for your child and to plan its financial future, at least for a few years after your demise. There are a few aspects to consider:
- Who will bear some of the expenses, such as funeral costs or inheritance rights? Different life insurance formulae exist. They may, in the event of death, provide for the payment of a sum of money defined in advance, which can be used to cover the above costs.
- Who will pay for your mortgage? Belgian banks require you to have life insurance for outstanding amounts linked to your mortgage; this will prevent your heirs from having huge debts. In the event of your death, this protection will pay off the outstanding balance of your loan.
- What will happen to your other loans? Life insurance for outstanding amounts also exists for other kinds of loans (personal, car, home improvement, etc.) but is not mandatory. If you have several outstanding loans with significant amounts, it would be wise to take out cover for them.
Be prepared for the worst, but hope for the best! Consider now the insurance you might need and make sure your child will be protected the way you want it to be.
Make an appointment with your banker or at an ING branch to find out all the details. You can also ask your questions by phone on +32 2 464 60 04.