Ask an Expert to Buy Life Insurance

We're happy to know that you're prioritizing your family's future. Our life insurance expert will assist you in finding the best insurance plan. To schedule a call, please share some of the below details.

Enter Name

Enter Mobile

Enter E-mail

What’s your gender?

Male

Female

Other

Request Type

Select

Request Type

Select

Request Type

Select

Maternity Leave and Life Insurance: What Changes Financially?

The arrival of a baby brings significant changes to your household finances. You may need to manage hospital bills, newborn essentials, childcare costs and reduced income during maternity leave, while continuing to pay EMIs, rent and insurance premiums. For expecting parents, these changes make financial planning an important part of preparing for parenthood.

Maternity leave can temporarily reduce household income while increasing expenses.
Planning your finances early helps you manage this transition.
Expecting parents should review existing life insurance, emergency savings, maternity benefits and outstanding liabilities.
A combination of term insurance and long-term investment planning, such as a child-focused ULIP, can help you prepare for your child's future.

Share your basic details to calculate the returns Fill in a few more details for your quote

Full Name

Date of Birth

Gender

Buying For

Mobile Number

I authorise IndiaFirst Life to contact me, send updates through Whatsapp even if my number is on the NDNC registry.

Please agree to checkbox

How Does Maternity Leave Affect Your Finances?

Maternity leave can affect your finances differently depending on your employer's leave policy, your employment status and whether you receive full salary during your absence. A salaried parent may continue receiving income during paid leave, while a self-employed parent, freelancer or individual taking unpaid leave may experience a temporary reduction in earnings.

Your financial responsibilities may also increase if one parent takes an extended career break or reduces working hours to care for the child. Consequently, insurance for expecting parents should be considered alongside emergency savings, maternity benefits and long-term investment goals.

Insurance Guide for New/Expecting Parents

According to India's Ministry of Labour and Employment, the Maternity Benefit Act, as amended in 2017, provides eligible women with up to 26 weeks of paid maternity leave for up to two surviving children, subject to applicable eligibility conditions. The entitlement is generally 12 weeks for women with two or more surviving children, and specific provisions apply to eligible adoptive and commissioning mothers. This statutory benefit does not automatically apply in the same way to every worker or employment arrangement.

What Financial Changes Should You Expect After Having a Baby?

Your financial priorities may change in several ways after childbirth. Understanding these changes can help you plan your savings and insurance requirements more effectively

Financial area	Potential change	What you can do
Monthly income	Reduced earnings during unpaid leave or a career break	Prepare a maternity leave budget
Medical expenses	Delivery, consultations, medicines and postnatal care	Review health insurance and employer benefits
Household spending	Baby essentials, nutrition, childcare and supplies	Set aside a dedicated monthly amount
Loan repayments	EMIs continue even if income falls	Maintain an emergency reserve
Long-term goals	Education and childcare costs increase future funding needs	Start goal-based investments early
Financial protection	More dependants rely on your income	Review life insurance coverage

Why Should Expecting Parents Review Their Life Insurance?

Life insurance helps protect your dependants against the financial consequences of your untimely death. After having a child, your existing coverage may no longer be sufficient because your family's financial obligations have increased.

For example, your spouse may need funds to cover daily living expenses, outstanding loans, childcare and education if your income is no longer available. A suitable life insurance policy can provide financial support to help meet these obligations.

When evaluating life insurance for expecting parents, consider the following:

Income replacement: Estimate how much your family would need to maintain its standard of living.
Outstanding liabilities: Include home loans, personal loans and other debts.
Child-related expenses: Account for education, healthcare and childcare over the coming years.
Existing financial resources: Consider savings, investments, employer-provided life cover and existing insurance policies.
Policy duration: Choose a coverage period that reflects your child's dependency and your financial commitments.

Start Planning for Your Child’s Future Today.

Explore the IndiaFirst Life Radiance Smart Invest Plan to combine life cover with market-linked investment opportunities for long-term financial goals such as your child’s education and future milestones.

Get Quote

How Can IndiaFirst Life Plans Support Your Financial Planning?

When you plan for parenthood, it is helpful to distinguish between financial protection for your family and investments for future goals. IndiaFirst Life offers products that address these different requirements.

IndiaFirst Life Guardian of Life Dreams Term Plan
IndiaFirst Life Radiance Smart Invest Plan

IndiaFirst Life Guardian of Life Dreams Term Plan

The IndiaFirst Life Guardian of Life Dreams Term Plan, also known as the GOLD Term Plan, can help you assess life cover when you are planning for parenthood. It offers a choice between pure protection and a return of premium option, with death-benefit payouts as a lump sum, monthly income or a combination of both, subject to policy terms and conditions.

For expecting parents, the cover can help protect household expenses, outstanding liabilities and future financial responsibilities if the earning parent dies during the policy term. Review the policy term, cover amount, premium commitment, exclusions and payout option before deciding.

IndiaFirst Life Radiance Smart Invest Plan

The IndiaFirst Life Radiance Smart Invest Plan is a unit-linked insurance plan (ULIP) that combines life cover with market-linked investment opportunities. It offers 10 fund options, six investment strategies, unlimited free fund switches and three plan options. The Family Care option includes a waiver of future premiums on the insured person's death, subject to policy terms.

You can evaluate this plan as part of a long-term financial strategy for goals such as your child's education or other future milestones. Starting early may give your investments more time to grow, although returns are market-linked and are not guaranteed. A ULIP should not be treated as a substitute for adequate standalone life insurance.

How Can You Prepare a Financial Plan Before the Baby Arrives?

A structured approach can help you manage your finances during maternity leave and beyond.

Prepare a maternity leave budget

Calculate expected income, essential expenses, medical costs and any unpaid leave period. Check your employer's maternity policy and applicable statutory benefits.

Build an emergency fund

Aim to keep around three to six months of essential expenses readily accessible, adjusting the amount to your income stability and family responsibilities.

Review health insurance

Check maternity benefits, waiting periods, room-rent limits, newborn coverage and exclusions. Confirm whether your existing policy covers the expenses you expect.

Review life insurance

Estimate your required cover based on income replacement, outstanding loans, childcare and education costs. Review existing policies before purchasing additional coverage.

Start long-term goal planning

Estimate future education expenses and explore suitable savings or investment options according to your time horizon and risk tolerance.

Update nominees and records

Review nominations across insurance policies, bank accounts and investments. Ensure your spouse or another trusted person knows where important financial documents are maintained.

See How Your Savings Can Grow for Your Child’s Future.

Estimate how your investment could grow over time with the power of compounding. Use the IndiaFirst Life Power of Compounding Calculator to understand potential future value and plan for long-term financial goals.

Calculate Now

What Should NRI Expecting Parents Keep in Mind?

If you live overseas and are expecting a child, your financial planning may involve responsibilities in both India and your country of residence. You may need to account for healthcare costs abroad, childcare expenses, currency fluctuations, overseas income and financial commitments in India.

Before purchasing or modifying a policy, verify whether the insurer accepts applications from non-resident Indians for your specific residency status. Review the applicable underwriting requirements, premium payment methods, policy servicing arrangements, nominee documentation and claim settlement procedures.

If you are returning to India after childbirth, consider how the move may affect your income, healthcare arrangements, tax obligations and existing insurance coverage. Your financial plan should reflect your family's actual place of residence and long-term goals.

Conclusion

Maternity leave and parenthood can change your household's income, expenses and long-term financial responsibilities. Planning ahead helps you manage temporary income disruptions while preparing for your child's future needs.

As expecting parents, start by reviewing your maternity benefits, emergency savings, health insurance and existing life cover. Consider a term insurance plan, such as IndiaFirst Life GOLD Term Plan, for financial protection, and evaluate a long-term investment-linked option, such as IndiaFirst Life Radiance Smart Invest Plan, for future financial goals.

Plans that may interest you!

IndiaFirst Life Long Guaranteed Income Plan

Product Image
Product Name: IndiaFirst Life Long Guaranteed Income Plan
Dropdown Field: Guaranteed Returns
Product Description: An endowment life insurance plan which guarantees regular income, making it an excellent guaranteed savings plan.
Product Benefits: Short-Term Payments, Long-Term Gains
Guaranteed Income to fulfill Financial Goals
Lifetime Income Till 99 years of age
Premium Payback Assurance
Continuous Life Cover without any interruption
Enhance with Optional Riders
Tax Benefits*
Porduct Detail Page URL: Get Quote
Product Buy Now URL and CTA Text: Learn More

IndiaFirst Life Radiance Smart Invest Plan

Product Image
Product Name: IndiaFirst Life Radiance Smart Invest Plan
Dropdown Field: Investment
Product Description: Have you heard of a plan that not only gives you a life cover but also helps in wealth creation?
Enjoy 2 benefits in 1 plan with IndiaFirst Life Radiance Smart Invest Plan.
Product Benefits: Zero Fund allocation charges
10 different funds to choose from
3 plan options to achieve your investment goals
100% money invested for higher returns
Porduct Detail Page URL: Get Quote
Product Buy Now URL and CTA Text: Learn More

IndiaFirst Life Guardian of Life Dreams Term Plan

Product Image
Product Name: IndiaFirst Life Guardian of Life Dreams Term Plan
Dropdown Field: Term Plan
Product Description: Protect your family's dreams with affordable life cover, flexible payout options, return of premium benefits, and lifelong financial security, starting at just ₹13/day.*
Product Benefits: Choice of Pure Protection or Return of Premium option
A special 16% Level Premium Discount for women
Health Management Services worth Up to ₹75,000 p.a.
Flexible Death Benefit payout as a Lumpsum or Monthly Income or Both
Porduct Detail Page URL: Calculate Premium
Product Buy Now URL and CTA Text: Learn More