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Insurance for New or Expecting Parents

​​​​​​​​​​​​​​Expecting parents

Last Updated: November 10, 2021

If you are expecting to​ or have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance ​and disability income protection. We also recommend checking with your health insurer before the birth or adoption to make sure that you understand the coordination of benefits and do not receive any unexpected bills. 

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If you are expecting to or have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance and disability income protection insurance. We also recommend checking with your health insurer before the birth or adoption to make sure that you understand what you need to do in order for coverage to begin. You may need to contact the insurer after your child's birth or placement for adoption occurs and within a certain time period, typically within 30-60 days. 

It is also important prior to the birth or adoption of your child to decide, if there is more than one insurance policy that can cover the child, whose insurance you want the child to be insured under. This is important to be sure you are following any requirements that policy and insurer may have to begin coverage for your child.

Make sure to understand the “birthday rule." A child who can be covered by two or more health insurance policies (parents have separate policies) must take as primary coverage the plan of the parent whose birthday comes first in the calendar year, not the age of the parent but just whose birthday comes first in any year; the other parent's insurance is considered secondary. Understanding how the policies coordinate before the birth can help you avoid costly bills.

If you are covered by a Marketplace health plan, make sure you contact your insurer within 30 days after your baby's birth or placement for adoption to add your child to the policy. Understand there may or may not be additional premium required to cover your child.

NOTE: Coverage in WI begins upon placement for adoption (not final adoption). 


Marketplace/ACA Health Plans 

Maternity care and newborn care services provided before and after your child is born are essential health benefits. This means all qualified health plans inside and outside the Marketplace must cover them.

If you recently gave birth and don’t have health coverage, having a baby qualifies you for a Special Enrollment Period. This means that after you have your baby you can enroll in or change Marketplace coverage. 

Make sure you apply within 60 days after your baby’s birth or adoption. 

If you are planning for your life insurance to match your survivors’ expenses after your death, a new child will no doubt add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child's college education, life insurance can help. And if you keep your current life insurance policy, don’t forget to update the beneficiary designations to include the new child. 

According to LIMRA, a life insurance and marketing research association, 70% of U.S. households with children under 18 would have trouble meeting everyday living expenses within a few months if a primary wage earner were to die. 

Before you buy a disability policy:

  • First determine how much income you need to meet your financial obligations. NAIC provides a helpful worksheet to help determine your disability needs.   

  • Know what’s included in your policy. Short-term disability insurance typically replaces some of your salary for three to six months. Long-term will generally begin six months after the disability and can last years or even until retirement age. 

  • Disability policies vary by provider. Some pay benefits if you are unable to perform the duties of your occupation, while others require that your disability prevent you from any employment that you are qualified for. 

NAIC looks at some of the top considerations when choosing disability insurance: If a Disability Were to Keep You From Earning a Living, How Would You Pay Your Bills? 

Adding to your family through birth or adoption may mean it is time to trade in your vehicle for a more family-friendly one that better accommodates car seats and can transport strollers and all the extra gear that comes with a baby. 

The price of a car, repair costs, safety features, and the target audience all have an impact on your premium. Vehicles with a low starting price, designed with families in mind, plenty of safety features, small engines, and reasonable repair costs tend to get lower rates. 

Still, some vehicles (even family friendly ones) have higher rates than others, so it's important to compare costs before you make a purchase. A growing family adds new expenses so be sure to shop around and get the best deal you can.