Welcoming a new baby into your life is a huge responsibility. Parents must not only meet their baby's ongoing physical and emotional needs; they must also be ready for any unforeseen circumstances - including life's hardships and tragedies.

Consequently, it is very important that new parents make sure they have the necessary provisions in place should the unthinkable occur. "Immediately after a baby arrives, parents need to make sure they have life insurance and a will," says Brandon Kramer, a financial center manager with Fifth Third Bank. He admits it can be difficult for new parents to contemplate dying, but life insurance agents and attorneys can guide them through any difficult decisions.

Protecting your family's quality of life
"I typically advise couples to obtain life insurance as soon as they get married. But it's even more crucial once a new baby arrives," Kramer continues. "I suggest they obtain enough insurance to cover their mortgage and still leave a nest egg that can generate enough interest for the surviving spouse and child to maintain their quality of life."

The importance of a will
Wills are generally thought of as an estate-planning tool. However, they also allow parents to name legal guardians for their children, should both parents die or become unable to raise the children themselves. "It's important to determine who your child's guardians will be - and then discuss that with the potential guardians," Kramer adds.

When both parents die without a will, the court appoints guardians for the children. In some cases, people may contest the guardianship, which can result in costly and time-consuming court proceedings.

Revisiting employee benefits
Parents may also want to re-evaluate some optional employee benefits, such as flexible spending accounts and health savings accounts. These benefits are somewhat similar in that they both deduct pre-taxed income from employees' paychecks and deposit it into special accounts. This money can be used for paying for health-related expenses that aren't covered by insurance.

Before taking advantages of these benefits, Kramer says it's important to review what is covered by health insurance and what is not. It's also important to know whether money in these accounts must be spent by a certain time. He also encourages parents to ask their banker for information on any other financial concerns related to starting a family. "Every family is different. Once we understand the family's individual needs, we are better able to tailor our advice."

For more information on updating benefits and documents, contact Fifth Third Bank at (866) 475-4201 or visit the Fifth Third website.