From maternity leave and parenting classes to readying the new baby’s room, expectant parents have a lot to handle while preparing for a new child.
Amid the many tasks, remember to review your life insurance so your growing family’s financial well‑being is protected.
For general planning guidance, see Understanding Insurance Needs.
Three areas to review
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Type of insurance
Most policies fall into two categories: term life and permanent life. Term policies provide protection for a specified period and do not accumulate cash value.
Permanent policies cover you for life and build cash value that can be borrowed against for future expenses such as a child’s college tuition.
Keep in mind that availability, options, and cost depend on your age and health, and you’ll generally find the best rates when you buy younger and while in good health.
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Coverage
The addition of a child often increases the need for protection if a wage earner passes away unexpectedly.
Each parent should have a life insurance policy, including a stay‑at‑home spouse, because unpaid household and childcare tasks would become paid expenses for the surviving parent.
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Beneficiaries
If you die without designated beneficiaries, life insurance proceeds may become part of your estate and could be delayed by probate.
Update beneficiary designations soon after a birth or adoption and name both a primary and a contingent beneficiary so funds are available quickly for your child’s care.
For an overview of policy types and common features, see Life Insurance Overview.
Insurance might not be as fun as baby shopping, but reviewing your policy now can ensure it meets your growing family’s needs and protects your child’s future.
If you want to review options or get a price estimate, talk to an agent.
Frequently Asked Questions
How much life insurance should I buy after having a child?
Consider coverage that replaces lost income, pays for childcare and education, and covers outstanding debts; the exact amount depends on your family’s budget and goals.
Should a stay‑at‑home parent have life insurance?
Yes. A policy on a stay‑at‑home parent helps cover the cost of childcare and household services that the surviving partner would otherwise need to purchase.
When should I update my beneficiary designations?
Update beneficiaries soon after a birth, adoption, marriage, or divorce to ensure proceeds go to the right people without delay.
Can I convert a term policy to permanent coverage later?
Many term policies include conversion options, but terms vary by contract; contact your insurer or agent to learn your policy’s conversion rules.