The New Parent's Financial Checklist: Life Insurance and More

Whether this is your first or you're already talking about having another baby, there’s a lot to consider with a new child on the way. You’ve probably got the name covered, but of course, there are plenty more items to cross off your list! Most people don’t immediately jump from pregnancy test to thinking about life insurance, but it can be one part of your overall plans to help protect your child, both physically and financially.

So along with popping prenatal vitamins and researching car seats, you might want to start considering how else you can protect your future child. Whether that’s life insurance, a will or college savings, we’ll help you get started. Whether you're a single parent figuring out beneficiaries or making plans with your partner, it’s never too early to focus on your financial priorities for what's to come.

Apply for Life Insurance

Estimated time - 10 minutes

Now that someone is depending on you, life insurance can be an easy and affordable way to help ensure your family's financial security. Getting covered used to mean talking to an agent and waiting weeks. These days, Fabric by Gerber Life makes it easy, letting you sign up for a term life insurance policy online, without needing to speak to an agent.

Here’s how life insurance works, in a nutshell: You sign a contract with an insurer saying that if you were to pass away while your policy is active and in force (meaning you’re up to date with your premium payments), the insurance company will pay your loved ones a certain amount of money. They can use this “death benefit” for whatever they need, including paying off debt, keeping up with mortgage payments, funding your final expenses, paying for a kid’s college education or anything else.

The main reason people get life insurance is to supplement someone’s income, in other words to help contribute financially the way that person would’ve if they were still alive. That said, life insurance is also important for stay-at-home parents because the working parent may need to take time off from their career, or pay for additional childcare or help around the house.

You might’ve heard that your weight affects whether you can get life insurance and at what cost. That’s true, but shouldn’t be a reason to hold off on applying if you’re pregnant. Life insurance underwriters, or the people who figure out what kind of risk is associated with your insurance application, understand that it’s normal to gain weight when you’re pregnant. As a result, they account for weight gain related to pregnancy; if you’re having a healthy pregnancy, it’s possible you could get the same rate you’d have gotten if you weren’t pregnant.

The online application through Fabric by Gerber Life asks you questions about your health, personal life, finances, hobbies and more. Generally speaking, many people can fill it out in about 10 minutes. In terms of how long it takes to actually get life insurance, that varies from person to person. In some cases, you could be approved for coverage on the spot.

Ask About Employee Benefits

Estimated time - 15 minutes

Odds are your company has a parent-friendly program or two in place that was mentioned to you when you got hired, but didn’t make much of an impression at the time. Things like paid leave, unpaid leave and pre-tax child-care flex accounts are about to become more important. Now is the time to dig in and understand them all. You could easily save thousands in just the first year.

Set Up Health Care for Your Child

Estimated time - 30 minutes

The easiest and likely most cost-effective way to cover your child's healthcare needs is to add them to your existing insurance. Start by calling your current provider or the HR person at your office. Note: Insurance companies typically require you to get this done within 30 days of your child’s birth.

Get a Will

Estimated time - 10 minutes

It could be easy to put this one off indefinitely. Before a baby arrives, things can feel much simpler (although it’s still quicker and easier for your partner or loved ones to handle your estate if you have a will). With a child in the picture, the stakes are higher if you or your partner were to unexpectedly pass away. Without a will in place, a court must decide the best guardian for your child without input from you. In some cases, your child could become a ward of the state, or the court may choose a relative you wouldn’t have picked to raise your child. (Here’s how to choose a legal guardian to take care of your child if something were to happen to you.)

Fabric by Gerber Life can help you create a last will in less than 10 minutes, which you can make legally binding (in most states) by printing, signing and getting two people to witness.

Create a Simple Budget

Estimated time - 60 minutes

Lots of things are about to change. Without a plan to follow, you could easily fall off track without even knowing it. In addition to all of the things you currently spend money on (rent, utilities, groceries, cell phone, clothing, entertainment, etc.), make sure your budget includes new lines for childcare, diapers, baby gear and toys.

Open a 529 Account

Estimated time - 20 minutes

College is probably the single most intimidating financial hurdle for many new parents. But it doesn’t have to be. Taking small, consistent steps to contribute what you can to a college fund can add up to a meaningful amount over time.

Note that 529 plans are subject to investment risk, including the potential loss of principal. If withdrawals are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty, in addition to federal and, if applicable, state income tax. Investment returns will fluctuate and are subject to market volatility. Past performance is no guarantee of future results.

Taking care of the financial to-dos can help you feel more prepared, so you can spend more time focusing on what really matters—those amazing moments with your little one.

Fabric exists to help young families master their money. Our articles abide by strict editorial standards.

Information provided is general and educational in nature, is not financial advice, and all products or services discussed may not be offered by Fabric by Gerber Life  (“the Company”). The information is not intended to be, and should not be construed as, legal or tax advice. The Company does not provide legal or tax advice. Consult an attorney or tax advisor regarding your specific legal or tax situation. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. The Company makes no warranties with regard to the information or results obtained by its use. The Company disclaims any liability arising out of your use of, or reliance on, the information. The views and opinions of third-party content providers are solely those of the author and not Fabric by Gerber Life.