WWUD? Becoming Parents - financial planning?

[Hekabe]

We are (Hopefully) due to become 1st time parents in the next week and a half, and we'eve often nattered about getting life insurance... or health insurance.. or even a pension!

We are home owners, and we both are business owners so we tend to eat what we kill... but with sproglet on the way I think we should really plan ahead now.

But do I get health insurance? If one of us can't work there are some serious financial complications...

but then life insurance? We'd both like to know the other had a buffer should something happen - particularly for the DC.

Or maybe we should just have a savings pot?

Wondering what measures other 1st time parents have taken to think ahead!

Thanks All!

I think you need more than a savings pot should the absolute worst happen...so life insurance is an essential for me.

We also have critical illness and accident cover...but I work for a bank so get them super cheap. General market ones can be pricey so that's a judgment call.

Essentials I would say are life to cover the value of the mortgage and a savings pot with x months of income in - ideally 3+ but obviously as much as you can afford.

Great advice - thank you! I think then life insurance and savings when we can would be a great shout. Being self employed medical is extortionate. DH had a broken (5feactured) ankle a few years ago and his job required a lot of driving and moving around- that was a long 4 month recovery... we realised that it's worth paying for adittuonal therapy just to get back up and running really.

Life insurance is a must - we have enough to pay off the mortgage and allow the surviving parent 5 years without having to work if needed.

We also have critical illness cover and ours covers the children too so, for example, would pay out if one of us needed to stop work if they got an illness such as cancer.

And if you haven't written a will get one done!

Good advice @PotteringAlong

Sadly don't think we can afford all options but it sounds like life insurance is the go.

We do have wills, but before we were married. What kind of thing would we need to add? I assume who we choose the DC to go to in the event of a double trauma?

As you mention "or even a pension" and others have commented on the life insurance... I'll comment on the pension. You make it sound like neither of you have them?

Although I'm a big fan of life insurance, I expect there's a statistically bigger risk that you'll end up with bugger all at retirement than early death!

As you both own businesses there could be some creative and tax friendly ways to pay into your pensions via your businesses. Talk to your accountant!

Definitely get pension sorted, Wills and then Life insurance and savings. Work to towards 3 months living expensise and then continue adding to the pot.

@Adora - good point.

So... in order of most important... we should sort:

1. Wills - done, bar guardianship.

2. Pension (we only have state)

3. Life Insurance

4. Savings (ISA)

Does that sound right?

I have contacted an ISA I know, so hopefully we can get something sorted, even with a little to put away each month.

We do have wills, but before we were married.
Unless your wills were made in contemplation of marriage to each other, getting married cancels them, so you will need to make new ones.