Latest World News: Financial planning for new parents – they’re experts t
Parenthood again emphasizes the need to be financially responsible, as your child will depend on you for the next 18-20 years. Failing to manage your finances properly would be a burden on the whole family and cause emotional and mental stress, writes Dr Bhabatosh Mishra, director of Niva Bupa.
Becoming a parent is a life-changing experience that no one can fully explain or prepare for. Parenthood takes on new roles and responsibilities. As a new parent, you will obviously receive a lot of advice on how to prepare and take care of the little one. AAmong other things, it is essential that new parents or parents-to-be take a proactive approach to financial planning. One aspect that deserves special attention is health insurance. By getting health coverage early on, parents can provide a solid foundation for their family’s well-being.
In addition, parenthood re-emphasizes the need to be financially responsible as well, as your child will be dependent on you for the next 18-20 years. Failing to manage your finances properly would be a burden on the whole family and cause emotional and mental stress. Therefore, it is essential to adjust your expenses preventively, even before the arrival of your child, to prevent such situations from occurring.
Prepare for emergencies:
Life is unpredictable and unexpected medical emergencies can put a strain on your finances. It is wise to have an emergency fund in place to cover unexpected health expenses. Aim to save three to six months of living expenses to provide a safety net during difficult times. Health insurance acts as an essential safeguard, protecting your family’s financial stability in the face of unforeseen medical situations.
Refine the budget:
It is obvious to have a clear objective and direction in mind when undertaking a task, because it is not enough to rely on chance and hope for favorable results. As a new parent, the stakes are higher, especially financially, as any misstep can have a lasting impact on your entire family. Because your child is completely dependent on you, their well-being, especially during medical emergencies, could be compromised. Not to mention that any type of medical emergency can potentially derail your entire budget.
Assess your current status:
Before jumping into parenthood, it’s essential to assess whether your existing health insurance coverage is adequate. Consider the scope of benefits, deductibles, co-payments and any exclusions that may impact your family’s health needs. Understanding your current plan will help you identify gaps and determine the best course of action.
Understanding maternity and pediatric coverage:
When evaluating health insurance plans, pay particular attention to the coverage offered for maternity and pediatric care. Maternity coverage should include prenatal care, labor and delivery, and postnatal care for mother and child. Pediatric coverage should include routine checkups, vaccinations and any specialist care your child may need. Make sure these services are adequately covered to minimize out-of-pocket expenses.
Explore employer-sponsored plans:
If you and your partner have employer-sponsored health insurance plans, review the options available to add your child to coverage. Evaluate premiums, coverage limits, and the healthcare provider network to make sure they meet your needs. Learn about the registration process and deadlines to avoid missing out on crucial coverage.
Consider individual health insurance plans:
In most cases, employer-sponsored plans may not offer a full coverage option for your growing family. It is worth exploring individual health insurance plans specifically designed for family needs. Research different insurers, compare their coverage options, and weigh costs to find a plan that offers the best value for your family’s health needs.
Don’t just save, invest:
Relying solely on savings is a common mistake made by many well-meaning parents. While having a solid savings plan for your child’s future is a positive first step, it’s not enough due to the rising cost of living. By the time your child reaches adulthood and needs the funds, the amount saved is unlikely to be enough.
This is why it is crucial to go beyond savings and instead allocate funds to invest in various products. Investing not only allows your money to grow exponentially, but also frees up your time as your invested funds work in the background while you focus on other priorities. Investing money is no longer an option; it has become a necessity.
Conclusion
Financial planning can become overwhelming for new parents, but if done in a timely manner can protect the physical and financial well-being of the family. By evaluating various aspects of financial planning, including insurance options, starting early, and considering additional coverage such as life insurance and disability insurance, one can provide their family with the protection and financial stability they need.
Remember to create an emergency fund, budget wisely, save and invest for your child’s future. By implementing these financial planning tips, you can embrace parenthood with confidence and peace of mind.
The author,Dr. Bhabatosh Mishra is Director of Underwriting, Products and Claims at Niva Bupa. The opinions expressed are personal.
(Edited by: CH Unnikrishnan)
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An Overview of Global Events in 2023
In 2023, the world witnessed a myriad of events that left a lasting impact on global affairs. From political developments and economic shifts to environmental challenges and breakthroughs in science and technology, the year was marked by significant changes and a sense of urgency for collective action. Here’s an overview of some of the latest world news in 2023.
Political Unrest and Diplomatic Strides:
In the political arena, several regions experienced unrest and geopolitical tensions. The ongoing conflict in the Middle East continued to dominate headlines, with efforts towards peace and stability remaining elusive. However, there were also moments of diplomatic breakthroughs as nations engaged in dialogues to ease tensions and work towards lasting solutions.
Economic Transformations:
The global economy faced both challenges and opportunities. Trade disputes between major powers affected markets, while some countries grappled with debt crises. On the other hand, emerging economies showed resilience and promising growth, fueling optimism for a more balanced global economic landscape.
Technological Advancements:
Innovation surged forward in the tech industry, with breakthroughs in artificial intelligence, renewable energy, and space exploration. Quantum computing achieved milestones, promising radical transformations across industries. Renewable energy sources gained traction, with many countries setting ambitious goals to combat climate change.
Climate Crisis and Environmental Resilience:
As the climate crisis intensified, extreme weather events wreaked havoc in various parts of the world. Wildfires, hurricanes, and floods reminded humanity of the urgent need for climate action. In response, governments and communities across the globe doubled down on efforts to reduce carbon emissions, invest in sustainable infrastructure, and protect biodiversity.
Health and Pandemic Management:
Health remained a global priority as countries continued to combat the COVID-19 pandemic. With the emergence of new variants, vaccination efforts and public health measures remained crucial to curbing the spread of the virus. There were also significant advancements in medical research and technology, offering hope for better preparedness in handling future health crises.
Sports and Cultural Milestones:
Amidst the challenges, the world found moments of joy and unity through sports and culture. International sporting events brought together athletes from diverse backgrounds, promoting solidarity and camaraderie. Cultural exchanges and celebrations showcased the richness of human diversity and fostered mutual understanding.
In conclusion, the year 2023 was a dynamic period filled with significant events that shaped the course of history. From political unrest to technological advancements and environmental challenges, the world witnessed the complexities of the global landscape. While obstacles remained, there were also encouraging developments and collaborative efforts towards a more sustainable, peaceful, and prosperous future for all nations. As we move forward, the lessons learned from these events serve as a reminder of the importance of collective action and cooperation to address shared global challenges.