We’re Having a Baby
Congratulations. Amid everything else, a few money jobs done now will protect your family and set your child up, and most take minutes. Here’s the lot, in order.
A new baby changes your finances overnight. For the first time, someone depends on your income, which makes two things matter that may not have before: protecting your family if something happens to you, and starting to build something for your child. This module walks you through the practical checklist, then helps you act on the two big ones.
1. The new-baby checklist
Ten things worth sorting before and just after the birth. Work down them, several link out to a tool or another module.
This is the one people miss. Your AFCS lump sum goes to whoever you’ve nominated, not via your will. If it’s still pointing at a parent or ex-partner, your child and partner could miss out. Update it now.
A will lets you name a guardian for your child and say where things go. Without one, the law decides. Absolute Military members can access a solicitor-checked will free.
Now there’s a dependant relying on your income, this is the moment to check you’re protected. Book a review below, no obligation.
Update your AFPS 15 beneficiary nomination so your partner and child are covered.
Worth claiming even if a High Income Child Benefit Charge applies, that kicks in once the higher earner’s income passes £60,000, and the benefit is fully clawed back by £80,000, claiming also protects your State Pension National Insurance credits.
The simplest way to start building something for your child. More on this, and a projection, below.
Service maternity and paternity leave and pay are set out in JSP 760. Check your current entitlement and how your pay changes with your unit admin.
One-off kit plus ongoing costs. Build it into your monthly plan before, not after.
A child raises your “what if”. Aim to nudge your buffer up so a surprise cost doesn’t become debt.
A child can change your SFA entitlement. Check where you stand so accommodation keeps pace with your family.
2. Protecting your family
Up to now, if the worst happened, the impact landed mainly on you. With a child, it lands on them. That’s why a new baby is the single most common reason people put life cover in place, so that if you weren’t here, your family could stay in their home and keep going.
Your service gives you some protection already, the AFCS death-in-service lump sum, but that’s a fixed amount tied to service, and it may not be enough on its own to clear a mortgage and support a child for years. Whether you need more, and how much, depends on your situation. The right next step is a quick, no-obligation review with an adviser who can look at your circumstances.
This module won’t size your cover for you
That’s deliberate, and it’s the rule. Working out whether you need cover, and how much, is regulated advice. It’s a conversation for a qualified adviser, not a web page. Book one below and they’ll do it properly.
3. Building something for your child
A Junior ISA (JISA) is a tax-free account in your child’s name. You (and grandparents, and anyone else) can pay in up to £9,000 a year; it grows tax-free, and it becomes your child’s at 18. Start small and early and time does the heavy lifting.
See the difference starting now makes
The in-module JISA projection lets you put in a monthly amount and see roughly what it could be worth by your child’s 18th birthday. Even a modest amount each month adds up over 18 years. Want to set one up or talk options? Use the savings button below.
4. Take the next step
The two that matter most when there’s a baby on the way, pick either, or both. No advice is given here; each one gets your details to an adviser for a free, no-obligation conversation.
Talk to Millie about life cover
Millie takes a few details about your situation so an adviser can help, no obligation, and no advice until you speak to a person.
Discuss saving for your child
Talk through a Junior ISA and the best way to start putting something aside.
Doing this together?
This module is partner-friendly, share it. A baby is a good moment for both of you to check your wills, nominations and cover line up. LE5 (Getting Married or Moving In) covers protecting each other.