If your family has grown recently, congratulations! This is a very exciting time. You want to do the best for your family, and that means enrolling them in your insurance benefits as soon as possible. Here is a breakdown of the top things to know about insurance and adding dependents to your policy.
Health Insurance
For children, qualifications vary depending on the child’s age, relationship to you, and taxable income (if applicable). Whenever you add a new child to your family, you need to contact your insurance provider within 60 days to add them to your plan. If not, you will have to wait until open enrollment and your child will be without insurance for a period of time.
- Infants: Your biological infant child will qualify for health insurance coverage provided you add them to your plan within 60 days of their birth. This can be a busy time for new parents, so be sure to set a reminder or have a family member help you complete the paperwork.
- Children of Divorced or Separated Households: Children of divorced or separated households can also be eligible as long as they are under age 26 and only claimed as a dependent in one household. If someone else claims your child as a dependent, you may not include them in your insurance plan.
- Adopted, Foster, and Step-Children: If you have not legally adopted your step child, they will not be eligible for coverage under your own health plan. However, if you have adopted the child and he or she has lived with you for at least six months, you will be able to add them. Foster children may also be added within 60 days of placement, provided they are under age 26 and not earning income that exceeds half of the cost of their support expenses.
- Adult Biological Children and Special Needs: Adult biological children will not be eligible for health insurance coverage through your plan after their 26th birthday. However, adult children with disabilities or special needs may qualify for continued coverage.
Your employer’s health insurance plan or individual insurance plan may exclude coverage for some children, such as those of your domestic partner, so speak with your insurance agent if you have questions about coverage limits.
Marriage is also a qualifying event for adding a dependent to your health insurance coverage. If you get married, you have 60 days to add your spouse to your health insurance plan. For those with married children, you are able to keep your married child on your plan as long as they do not file a joint tax return with their spouse and are under age 26.
Life Insurance
Unless you have an irrevocable life insurance beneficiary, which cannot be changed without the beneficiary’s permission, you may add or remove life insurance beneficiaries at any time. As a single adult, you may not need a life insurance policy with a high payout because you have no dependents. When you add a family member, whether it is a spouse or child, you should consider reviewing your policy. Your insurance agent can review options and help you determine the appropriate life insurance policy for your growing family. Like with health insurance, this should be done soon after getting married or having a child. While you hope not to need it, you do not want to leave your family without the support they need.
When you welcome a new member into your family, life changes significantly. Updating your insurance policies can seem like one of the last things you want to think about, but it is vital to protect your family’s health and well-being. To learn more about adding dependents or beneficiaries to your policies, speak with your local insurance agent today.