Prices Increasing soon Prices Increasing Soon

Financial and Personal Planning Tips for New Parenthood

Welcoming a child into the world is one of life's most profound and rewarding experiences. Alongside the joy and excitement, parenthood also brings significant financial and emotional responsibilities. Whether you're actively planning or simply considering starting a family, preparing ahead is key. 

Read more
Gets ₹1 Cr. Life Cover at just
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 15% discount# for buying online
Only certified experts will call you on 100% recorded lines
We are rated++
rating
9.7 Crore
Registered Consumer
51
Insurance Partners
4.9 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Lowest Price Guarantee ˜
Secure Your Child's Future
Protecting what matters most in your absence
+91
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

Strategic financial planning and emotional readiness ease the transition and lay the groundwork for a stable and nurturing environment. Here are the top 5 decisions to be ready for parenthood: 

Building a Flexible Financial Corpus

Establishing a financial cushion is one of the first steps in preparing for parenthood. This flexible sum acts as a safety net for the expected and unexpected expenses of raising a child, from prenatal care to education and everything in between.

Start by taking a close look at your current savings and monthly budget. How much can you realistically set aside each month without straining your finances? Financial experts generally recommend building an emergency fund that can cover 6 to 12 months of household expenses. But when you're planning to welcome a child, it's essential to factor in additional costs, like medical expenses, childcare, diapers, formula, and other daily essentials.

Your emergency fund should be flexible and easily accessible in case of a sudden need. Ideally, it should be spread across liquid and low-risk options such as savings accounts, short-term fixed deposits, and liquid mutual funds. This way, your money is safe and within reach and working for you in the background.

Protecting Your Family's Future with Life Insurance

Becoming a parent also means protecting your family emotionally and financially. Life insurance becomes critical at this stage. It ensures that your family is financially secure even in your absence.

While many types of life insurance policies are available, term life insurance is unique because of its simplicity and affordability. A term plan provides a substantial death benefit at a low premium, making it ideal for young parents. The idea is to choose a sum assured that would cover your family's living expenses, children's education, and any outstanding loans or liabilities.

When opting for a term plan:

  • Select a policy that covers at least 10-15 times your annual income.

  • The premium amount is affordable. Choose the payment mode that works best for you, whether monthly, quarterly, half-yearly, or yearly. You can use an online term plan calculator to calculate this amount. 

  • Choose a tenure that extends until your children are financially independent.

  • Ensure your spouse is also covered under a separate or joint term policy.

  • Review and update your insurance needs regularly as your family grows and your financial responsibilities evolve.

  • Shop around, compare, and then buy the best life insurance plan for your needs. You can go to Policybazaar and compare various choices. 

Creating a Strong Investment Portfolio

Long-term financial health goes beyond savings. Investing strategically ensures that your money grows to meet future milestones such as school fees, college tuition, and even the dream of buying a bigger home. Parenthood demands a shift from a short-term mindset to one that prioritizes long-term goals.

Invest in equity mutual funds, Public Provident Funds (PPF), Systematic Investment Plans (SIPs), and child-specific investment plans. Align your investments with specific financial goals and timelines. Regularly revisit your portfolio and rebalance based on changing priorities or life circumstances.

Budgeting and Lifestyle Adjustments

Parenthood will inevitably affect your lifestyle and daily expenses. Planning allows you to adjust without financial strain. Start by reviewing and tightening your monthly budget. Identify non-essential spending that can be reduced to make room for baby-related costs.

You may need to consider switching to a more cost-effective healthcare plan, upgrading your living space, or adjusting your career path to accommodate childcare needs. These are not just financial decisions but deeply personal ones that impact your day-to-day life. Discuss these possibilities with your partner and make joint decisions.

Plan Early for Education and Childcare Expenses

Raising a child involves significant long-term and short-term financial commitments, especially in education and childcare. Education costs are rising faster than inflation, so building a dedicated education fund is essential. Consider goal-oriented investment options such as Sukanya Samriddhi Yojana (India, for girl children).

In parallel, it's essential to budget for childcare costs like daycare, nannies, and early education programs. These expenses can significantly dent your monthly cash flow. Planning for them in advance helps you adjust your lifestyle and avoid financial stress when these recurring costs begin. Integrating education and childcare planning into your broader financial strategy before the child arrives ensures greater stability and readiness for the road ahead.

Summing Up

Parenthood is a beautiful journey filled with love, growth, and responsibility. Planning ahead, both financially and emotionally, helps you create a stable, secure environment where your child can truly thrive. Every step matters, from building a flexible financial cushion and securing term insurance to growing a strong investment portfolio and preparing yourself emotionally for the road ahead.

The more prepared you are, the more you'll be able to enjoy the magical moments of raising a child. And remember: planning doesn't remove life's uncertainties, it simply gives you the confidence to face them head-on.

FAQ's

  • Q1: Is there any financial assistance for marriage in India?

    A: Yes, some Indian states offer marriage assistance schemes for economically weaker families. Eligible beneficiaries may receive:
    ₹25,000 in aid
    An 8-gram 22-carat gold coin
    Some schemes provide this as a National Savings Certificate (NSC). To qualify, the family's annual income must be below a set limit, which varies by state. Check with your local social welfare office or state government website for exact eligibility and application steps.
  • Q2: How should finances be split in a marriage?

    A: Couples often split expenses 50/50 if their incomes are similar. A proportional split based on income percentage may feel fairer if one earns more. For example, the higher earner pays a larger share of joint costs. Discuss finances openly, consider a joint account for shared expenses, and review your plan regularly to stay aligned.

Premium By Age

˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com  in the first 6 months of FY 24-25.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

© Copyright 2008-2025 policybazaar.com. All Rights Reserved

+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.



Choose Term Insurance Plan as per you need

Plans starting from @ ₹473/Month*
Term Insurance
1 Crore Term Insurance
Term Insurance
2 Crore Term Insurance
Term Insurance
4 Crore Term Insurance
Term Insurance
5 Crore Term Insurance
Term Insurance
6 Crore Term Insurance
Term Insurance
7 Crore Term Insurance
Term Insurance
7.5 Crore Term Insurance
Term Insurance
8 Crore Term Insurance
Term Insurance
9 Crore Term Insurance
Term Insurance
15 Crore Term Insurance
Term Insurance
20 Crore Term Insurance
Term Insurance
25 Crore Term Insurance
Term Insurance
30 Crore Term Insurance
Term Insurance
15 Lakh Term Insurance
Term Insurance
60 Lakh Term Insurance

Term Insurance Articles

  • Recent Article
  • Popular Articles
23 May 2025

Things to Do Before You Turn 40

Turning 40 is a significant milestone. It’s the stage where

Read more
22 May 2025

5 Ways to Safeguard Your Family as a Breadwinner...

Entering your 50s often means you're at the peak of your career

Read more
22 May 2025

How to Plan Better as the Financial Pillar of the...

Being a family's financial backbone comes with immense

Read more
22 May 2025

Adoption in India: Legal, Financial, and...

Adoption is a life-changing journey, both for the child and the

Read more
07 May 2025

Things to Do Before Turning 20

Turning 20 is a significant turning point. You are still early

Read more

Islamic Baby Boy Names from the Qur'an

Choosing a baby boy's name from the Qur'an brings spiritual significance and a deep connection to Islamic values,

Read more

Modern Islamic baby girl names 2025

Choosing a modern Islamic name for a baby girl connects her to cultural traditions while embracing contemporary

Read more

100+ Top Hindu Baby Girl Names

Choosing sweet and cute baby girl names is a very special and meaningful tradition for all Indian parents. Hindu

Read more

Powerful Lord Shiva Names for Baby Boys

Selecting a meaningful name for your child is a significant decision. Baby boy names inspired by Lord Shiva carry

Read more

Popular Islamic Baby Girl Names

Choosing a popular Urdu baby girl’s name is a beautiful way to honor cultural traditions and include spiritual

Read more
Get Call Back Now
top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL