Becoming a parent changes everything — your sleep, your schedule, your sense of purpose. But what about your insurance? If your policies are still set up from the days before parenthood, your growing family may not be properly protected. The reality is, the moment you welcome a child into your life, your responsibilities shift — and so should your financial safety net.
This isn’t just about ticking a box. It’s about peace of mind. It’s about knowing that, if the worst were to happen, your family’s financial future won’t unravel. Here’s why now is the time to complete an insurance review for your family — and how the right protection can make all the difference.
Growing Family = Growing Responsibilities
Your baby brings joy, sleepless nights, and serious financial responsibility. A single income may now need to support more than one person as expenses rise, and your capacity to absorb financial shocks drops. If you or your partner were to pass away, could the surviving parent afford to raise the child alone? Would there be enough money to cover day-to-day living, future education costs, or even just the mortgage?
The insurance cover you had before kids likely doesn’t reflect your new reality, and therefore is ripe for review. Updating your life and income protection policies is one of the most important steps you can take to safeguard your family’s future.
What If You Couldn’t Work Tomorrow?
Your income is now one of your family’s greatest assets — it puts food on the table, pays the bills, and supports your child’s needs. But what would happen if you couldn’t work for six months due to illness or injury?
Without income protection, many families are forced to rely on savings, credit cards, or government support — none of which stretch very far. A well-structured income protection policy can provide up to 70% of your regular income while you recover, keeping the financial pressure at bay. Just as you insure your home or car, it’s time to insure your ability to earn an income — especially when others now depend on it. For more on what income protection insurance does and does not cover, read our article here.
Review your Life Insurance: How Much Is Enough Now?
The cost of raising a child in Australia is substantial — estimates range from around $130,000 to $548,000 by the time they turn 18, depending on family circumstances and income.1 Add to that your mortgage, household bills, school fees, and day-to-day living expenses.
If you or your partner were to pass away, would there be enough money to maintain your family’s lifestyle? Would your children’s education and wellbeing be protected?
Now is the time to reassess how much life insurance you actually need. It should be enough to:
- Clear outstanding debts
- Replace lost income
- Fund future expenses (education, healthcare, etc.)
If your cover hasn’t changed since your single or newlywed days, it’s probably not enough.
Trauma & TPD Insurance Review: Protecting Against the Unexpected
Life insurance isn’t just about death. What happens if you fall seriously ill and can no longer work? Trauma insurance provides a lump sum payment if you’re diagnosed with a serious illness like cancer, heart attack or stroke — helping to cover treatment costs and lost income. Similarly, Total and Permanent Disability (TPD) insurance pays a lump sum if a condition or injury permanently prevents you from returning to work. These policies can help pay off debts, fund necessary renovations (like wheelchair access), and support long-term care. For families, that financial cushion is critical.
Insurance Through Super: Is It Still Enough?
Many Australians have default life or TPD insurance through their super fund. While convenient, it’s often not tailored to your needs — especially once you start a family.
Default cover is typically:
- Capped at a basic level
- Not updated when your life circumstances change
- Cancelled if your super account becomes inactive
- Subject to delays and restrictions at claim time
It’s essential to review this cover carefully. It may be suitable as a base, but often falls short when family needs grow. A financial adviser can help you determine whether additional standalone cover is needed.
Stay-at-Home Parents Need Cover Too
Just because a parent isn’t earning an income doesn’t mean their contribution isn’t valuable. In fact, replacing the work of a stay-at-home parent — cooking, cleaning, childcare, transportation — could cost tens of thousands of dollars per year.
If a stay-at-home parent became seriously ill or passed away, the family would likely need to pay for outside help. Insurance can cover these unexpected costs and help keep life on track during difficult times. Protection should apply to both parents — regardless of who earns the income.
Beneficiaries and Estate Planning
Welcoming a baby is also a good time to review your estate planning. Are your beneficiaries up to date? Do you have a will? Who would care for your child if you weren’t around? Even the best insurance policy is ineffective if the benefit is delayed or paid to the wrong person. Consider setting up:
- A legally valid will
- Binding nominations for superannuation
- Clear guardianship arrangements
This ensures your wishes are followed and your family is looked after — financially and emotionally.
Insurance Review – Peace of Mind Starts with a Conversation
Becoming a parent changes everything — including your insurance needs. Now’s the time to ensure your family is protected, no matter what the future holds. If you haven’t conducte an insurance review since becoming a parent, or you have a new addition on the horizon, now is the time to act. You’ve got more to protect — and more to lose — than ever before.
At Priority Advisory Group, we understand the needs of growing families. Our qualified financial advisers can help you assess your current policies, identify any shortfalls, and tailor a protection plan that grows with your family. Contact us on 1300 349 188 or visit our contact page to book your personal insurance review.
Please note the information provided within this article is general of nature and is not a personal advice recommendation. Prior to considering strategies discussed in this article we recommend you seek personal financial advice. Please be aware that, without the benefit of financial advice, you may be committing yourself to financial strategies or products that are not appropriate for your overall personal situation, needs and objectives.
References:
1 Finder: The cost of raising children in Australia. Accessed August 2025 from: https://www.finder.com.au/life-insurance/life-insurance-and-the-cost-of-raising-children