6 types of insurance you may want to consider for your growing family

Have a baby on the way? Adopting a child? Here are some plans you might want to think about adding.

If you’re welcoming a child into your family, you might also be scrambling to add them to your health insurance plan. That’ll be top of mind, whether you have a newborn or are finalizing an adoption.

But health insurance isn’t the only type of coverage you’ll want to think about. As your family grows, your needs will change. Along with basic health insurance, you may also need types of insurance such as life insurance, dental and vision insurance, and possibly even protection in case you land in the hospital, explains Adam Rosenfeld. He’s the president of Rubicon Benefits, a division of World Insurance Associates in Melville, New York.

Below, find 6 common types of insurance that you’ll want to consider as your family grows. (It’s worth noting that none of these supplemental plans are meant to replace a traditional health plan. And you’ll pay extra for them, on top of your normal health insurance bill or premium.)

Thinking about life insurance? Call a licensed insurance agent at (800) 827-9990 to talk about plans.

Insurance type #1: Life insurance.

If you’ve explored life insurance policies, you may have found them to be a bit confusing. You’ll be glad to learn that it normally only boils down to 2 main types you’ll want to consider, says Rosenfeld. They include:

Term life insurance. Term life insurance is a life insurance policy that pays cash benefits to help your loved ones if you unexpectedly die. It’s for a set period of years. That might be 10- or 20-year time periods, for example. So, if you die during that time, your designated beneficiary will be paid a lump sum.

“If you have a newborn, I generally recommend that you get term life insurance for at least 20 years, so that you can make sure there is money to raise them and pay for college,” advises Rosenfeld.

Permanent or whole life insurance. On the other hand, permanent or whole life insurance policies offer lifetime coverage. While all life insurance policies have a death benefit that’s paid to a beneficiary, with permanent or whole life insurance, a part of your premium builds cash value that earns interest. This allows you to make some money on your policy, as well. These plans last until the policy owner dies or reaches 100 years of age.

“These plans cost a lot more money, but you get a return on your investment,” stresses Rosenfeld. “You don’t have to pick one or the other either. I often recommend clients buy both — for example, $800,000 term, and $200,000 whole life, rather than $1 million of just one type of coverage.”

Insurance type #2: Disability insurance.

When you’re younger, your chance of becoming disabled is actually higher than your risk of death, points out Rosenfeld. “Most young families realize they need life insurance, but they don’t think about disability insurance,” he says. “But if one parent becomes disabled, they’ll suddenly find that a lifetime’s worth of earnings may be gone and replaced with a lifetime’s worth of expenses.” Your workplace may offer disability insurance, which is a good place to start because it tends to be cheaper than if you buy it on your own, he adds.

Insurance type #3: Dental insurance.

Dental insurance helps pay for the cost of visits to a dentist for basic or preventive services. That could include teeth cleanings, X-rays and fillings. If you get health insurance through your employer, they may offer dental coverage, too, says Rosenfeld.

But if you buy an Affordable Care Act (ACA) insurance plan, or your company doesn’t offer dental insurance, you’ll need to shop for a stand-alone plan. If you get an ACA plan, for example, dental coverage must be available for your child as part of your health plan, although you don’t have to buy it.

Thinking about supplemental dental or vision insurance? Call a licensed insurance agent at (800) 827-9990 to talk about plans, or browse your options online today.

Insurance type #4: Vision insurance.

While all ACA plans must include vision coverage for kids, they won’t necessarily cover it for adults. “Medical insurance covers health coverage for your eyes — so if you develop a certain disease or condition, such as eye cancer, a detached retina or a cataract, your medical insurance could step in,” says Todd Ackerman, president and Iowa Unit Leader of World Insurance Associates in Burlington, Iowa.

But it won’t cover routine vision expenses such as a refraction exam to measure your eyesight for glasses, or the cost of eyeglasses or contact lenses. This is where vision insurance can help fill in the gaps in your coverage. You can buy a stand-alone vision insurance plan, or a plan that consists of multiple types of health coverage, such as dental and vision, that you buy together with one monthly premium.

Insurance type #5: Hospital indemnity insurance.

Hospital indemnity insurance — aka hospitalization insurance or hospital insurance — is a plan for people and their families when they are hospitalized or receive medical treatment in a hospital, says Rosenfeld. It helps to cover out-of-pocket expenses that are linked to hospital stays, such as:

• Deductibles
• Copayments
• Nonmedical costs such as childcare

(A deductible is the amount you pay out of pocket for health care services before your insurance kicks in; a copayment is a fixed cost for a certain health care service.)

Insurance type #6: Travel insurance.

If you take a family trip to Mexico or the Caribbean, your American health insurance often won’t cover you. International travel medical insurance provides secondary emergency coverage. It typically offers benefits that cover emergency medical, dental and evacuation services. Some plans, such as those with added travel protection benefits, cover specific travel-related circumstances, such as trip cancellation, trip interruptions or lost baggage.

Have further questions about supplemental insurance plans? Call a licensed insurance agent at (800) 827-9990 to talk about plans, or browse your options online today.

This article contains information that is compiled by HealthMarkets Insurance Agency. HealthMarkets Insurance Agency does not represent all the information provided are statements of fact.