Financial Checklist for a New Baby
A new dependant changes the insurance answer more than the budget answer.
At a glance
Figures checked 1 Sep 2026
Time needed
A few hours across the first months
Effort
Moderate
Have to hand
Benefits documents, insurance policies, and a will if you have one
What you get
The household is covered if the worst happens
What to take away
- Add the baby to health coverage within the special enrolment window, usually 30 days.
- Buy or increase term life for both parents, including a non-earning one.
- Name a guardian in a will — this is the item most often postponed.
- Add the child to health insurance promptly; birth opens a special enrolment period with a short deadline.
- Review both employers’ parental leave policies and any state paid family leave programme.
- Buy term life insurance sized with DIME, covering both parents.
- Confirm long-term disability coverage — income protection matters more now, not less.
- Write or update a will naming a guardian.
- Update beneficiaries, using a trust rather than naming a minor directly.
- Open a 529 if you intend to fund education, and start small if that is what is affordable.
- Re-run the household budget with childcare included — it is frequently the largest new fixed cost.
Never name a minor child directly as a life insurance beneficiary. Use a trust or a custodial arrangement so a court does not decide who controls the money.
Common questions
Run the DIME method rather than a multiple of salary. Include the cost of replacing unpaid childcare if one parent is at home.