For new parents
Buying term life with a new baby
Why now is the right time
A new child is the single most common trigger for buying life insurance, and for good reason: it is the moment a household acquires a dependent who cannot earn, for roughly two decades.
It also happens to be near the cheapest point you will ever buy. Most new parents are in their late twenties to late thirties, which is early enough that rates are low and health complications are unlikely to have accumulated.
Cover the stay-at-home parent too
This is the most-skipped decision in the category. If one parent is not earning, households often conclude there is no income to replace. But the surviving parent would have to pay for what the stay-at-home parent provides — full-time childcare, and often a change in their own working hours.
Price out full-time childcare in your area for the number of years until school, and you will usually find a policy on the non-earning parent is worth several hundred thousand dollars of coverage.
Match the term to the child, not the mortgage
A 20-year term taken when your child is born runs out around the time they finish college. That is usually the right shape. A 10-year term expires when they are in fourth grade, which is not.
Practical points
You do not need to wait for the birth. Coverage can be arranged during pregnancy, and if the pregnancy involves complications, being already underwritten is better than applying afterwards.
Check whether your employer coverage is portable. Most group life ends with employment, which makes it a supplement rather than a foundation.
Name the beneficiary properly, and consider naming a contingent beneficiary. Minor children generally cannot receive proceeds directly, which is a reason to talk to an attorney about a trust if the amounts are significant.
Reviewed July 2026. This is general information, not insurance advice.