After a baby arrives: an NZ insurance review worksheet

Start with the household, not a product

A baby can change who depends on each income and how much help the household would need if a parent could not work. The Financial Markets Authority names the birth of children as a reason to revisit life insurance. That is a prompt to review your situation, not a reason to buy a particular policy or amount.

On one page, list regular housing payments, food and utilities, childcare or other care, debt repayments and the income that pays for them. Note which costs might change during parental leave and which would continue. Include unpaid care: if one parent usually provides it, who could provide it if that parent were unavailable? Leave any unknown cost as a question rather than guessing a precise figure.

Think through time away from work

Write down each adult's work pattern, planned leave and any paid leave or workplace benefits you can confirm from current documents. Consider two separate questions: what would happen to the household budget during a shorter interruption, and what would the other adult need to manage a lasting change? These are planning questions, not predictions of illness, injury or a claim.

Do not assume an employer benefit, existing income policy or public support will replace a particular amount. The relevant entitlement, waiting time and conditions need checking against the actual scheme or policy. Keep personal health details in private records rather than putting them in a first web enquiry.

Find out what is already in place

Gather the latest schedule and wording for each personal policy, plus confirmed employer benefits. Mark the insured person, cover type, amount, premium, renewal date and any conditions you do not understand. ICNZ's insurance health check explains why the schedule and wording need to be read together.

Keep a separate column for questions about who would know a policy exists and where the documents are stored. The FMA advises telling family about life or funeral cover so they know what is held. You can share where to find documents without placing policy numbers or sensitive details on a public page or in an initial form message.

Reviewing does not automatically mean replacing or cancelling cover. The FMA cautions that switching policies can change terms and may involve new exclusions or qualifying periods. Ask for a written comparison before making a change, and check when any new arrangement actually takes effect.

Take four questions into the conversation

• Which household commitments would continue if either adult's income stopped?
• What existing cover and workplace benefits are confirmed in current documents?
• Which policy definitions, conditions and costs need explanation before any decision?
• If a change is considered, what would be gained, lost or subject to new terms?

Bring the worksheet to a conversation about personal insurance. You can contact James with a short outline and ask him to confirm the advice scope and a secure way to share documents. The first meeting checklist helps organise that next step.