EXPECTING? HERE’S WHAT TO DO

DO YOUR RESEARCH, BUDGET AND PLAN AHEAD

The following financial pointers may help new parents be financially better prepared.

1. Get medical cover Don’t wait until you’re pregnant to join a medical aid, or else the medical aid may consider the pregnancy a pre-existing condition and apply a 12-month waiting period. Thus none of the pregnancy- or birth-related medical expenses will be covered.

2. Maternity benefits

Find out what percentage of your income your employer will pay while you’re on maternity leave. If leave is unpaid, you need to budget to ensure you have enough cash.

3. UIF

Find out if you qualify for unemployment insurance. It’s calculated as a percentage of your income, subject to R14 872 maximum monthly income.

4. Notify medical aid

Notify your medical aid of the pregnancy. It’ll enable you to register for maternity programmes and ensure your medical aid is ready to provide cover to both you and baby should you experience any complications before baby’s due date. Add baby to your medical aid as soon as possible.

5. Consider costs

Determine what costs will be covered by your medical aid and what you’ll have to cover. Consider gynae and paediatrician visits, delivery and immunisations. Ask your doctor beforehand what rate he/she charges.

6. Reduce expenditure

Once baby arrives, your living expenses will increase substantially. Reduce your monthly expenditure as much as possible.

7. Don’t cancel policies

It’s not advisable to cancel retirement annuities or investment policies with a view to reducing expenses during maternity leave. Rather consider a premium holiday or reducing your premium to the minimum accepted amount.

8. Review life and disability cover

Ensure your child’s financial needs are adequately provided for should something happen to you.

9. Review your will

Consider a testamentary trust for the benefit of your minor child. Nominate your child’s guardian in your will and ensure they’re comfortable with the responsibility. This was first published on www.psg. co.za/news/insure – PSG