Ariel Munin

A New Child in the Family

16/10/2012

Every child born into the family, especially the first child, is greeted with a joy that is hard to describe: excitement of the parents and all the family, extensive preparations for welcoming the child at home, support for the mother returning from the hospital. There is no doubt that this is one of the greatest moments for every couple and a major happening in the life of the family.

In addition to changing our entire way of life, a birth requires us to do some hard thinking. In the heat of the excitement, many young couples forget that an additional child in the family is an insurance event and is a significant landmark in our insurance arrangements.

With regard to health insurance, it is important to remember that the insurance company does not insure each newborn child automatically. Moreover, the insurance company has no means of knowing that the child has been born unless it is so informed.  Unfortunately, if the parents fail to take this newborn child into account, it could give rise to a situation in which the parents believe the whole family is protected when in fact the child is not insured because they forgot to report it. For this reason, it is vital to remember to immediately contact the family insurance agent. We recommend doing this in any case to verify that no child has been overlooked, even those born earlier.

We should keep in mind that there are types of insurance, such as health and surgery, which the child can join at birth (following a health examination).  On the other hand, the child can only be covered by long term care and severe illness insurance at age three, at which time the subject should be considered again and brought to the attention of the insurance agent.

In life insurance, coverage at the time of death (risk insurance) is the important factor. As the family grows, so does the need for insurance to fill the economic void created by the death of one of the parents, and thus, each birth represents a point in time for giving additional thought to the level of coverage needed. At the same time, we must not forget to change the list of beneficiaries to include the child. (Beneficiaries are those who will receive the benefits if the event occurs). It could be very problematical if a child is forgotten, not included in the list of beneficiaries and the benefits are then divided without him.  Of course, if no beneficiaries at all are named, monies are bestowed in accordance with inheritance law.

Some parents are farsighted, aware of the importance of saving to ensure a source of funds for their children’s education when they reach college age. The insurance industry today can suggest a wide variety of excellent savings programs at low cost for various time periods.

In summary, a new child in the family is a great treasure and a special event, but we must remember that it’s an insurance event as well, that needs planning. It is important to be in touch with the family insurance agent, to keep him informed and work with him on the family’s insurance needs.

*Translated by Elsa Hadar

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