Having a Baby Insurance Checklist

A new baby is a major life event that requires updating your insurance coverage. Use this checklist to ensure your growing family is properly protected.

Before Baby Arrives (During Pregnancy)

Health Insurance Review

  • Verify your health plan covers maternity care
  • Understand your deductible and out-of-pocket maximum
  • Check which hospitals and OB-GYNs are in-network
  • Review what prenatal care is covered (ultrasounds, tests, classes)
  • Understand coverage for complications or NICU care
  • Ask about breast pump coverage (required under ACA)

Life Insurance (Most Critical)

  • Get term life insurance NOW (you’re younger and healthier)
  • Calculate coverage needed: 10-12x income, plus childcare costs
  • Both parents should have coverage, even non-working parent
  • Compare rates from multiple insurers
  • Note: Pregnancy doesn’t disqualify you, but delivery complications might

Disability Insurance

  • Review short-term disability for maternity leave coverage
  • Ensure long-term disability protects your family if you can’t work
  • Check employer coverage limits and consider supplemental policy
  • Understand elimination periods and benefit duration

Within 30 Days of Birth

Add Baby to Health Insurance

  • Birth is a qualifying life event - you have 30 days to enroll baby
  • Contact HR or insurance company immediately after birth
  • Have baby’s name and Social Security Number ready (if available)
  • Coverage is typically retroactive to birth date
  • If parents have separate plans, compare and choose the best one

Update Beneficiaries

  • Add child as contingent beneficiary on life insurance (after spouse)
  • Update 401(k) and IRA beneficiaries
  • Consider setting up a trust for minor children’s inheritance
  • Name a guardian in your will for insurance purposes

Hospital Bill Review

  • Request itemized hospital bill before paying
  • Verify charges match your insurance explanation of benefits (EOB)
  • Dispute any errors or unexpected charges
  • Set up payment plan if needed (hospitals often offer 0% interest)

First Year Adjustments

Coverage Updates

  • Review homeowners/renters insurance for baby equipment value
  • Consider increasing liability coverage (you now have more to protect)
  • Check if car seats and strollers are covered under auto or home policy
  • Review umbrella insurance if you have significant assets

Childcare Considerations

  • If using daycare, verify they have liability insurance
  • If hiring a nanny, consider household employer insurance
  • Understand workers’ comp requirements for domestic employees

Financial Planning

  • Open 529 college savings plan
  • Update budget for increased insurance costs
  • Consider increasing emergency fund (6 months of expenses)
  • Review and update will and estate documents

Life Insurance Specifics for New Parents

Coverage Amount Guidelines

  • Replace income for 18-22 years of child-rearing
  • Add $150,000-$300,000 for childcare if stay-at-home parent dies
  • Include future college costs ($100,000-$250,000 per child)
  • Cover outstanding debts (mortgage, student loans)
  • Factor in funeral costs ($10,000-$15,000)

Policy Recommendations

  • 20-30 year term life (until child is independent)
  • Coverage on both parents (even if one doesn’t work)
  • Consider return-of-premium term if budget allows
  • Lock in rates now while young and healthy

Common Mistakes to Avoid

  • Don’t miss the 30-day enrollment window for baby’s health insurance
  • Don’t assume employer life insurance is sufficient (usually only 1-2x salary)
  • Don’t delay getting life insurance (rates increase with age)
  • Don’t forget the non-working parent needs coverage too
  • Don’t neglect to name a guardian in your will

This checklist is for educational purposes. Consult with a licensed insurance professional for advice specific to your situation.