Should new parents get life insurance?

How long before having a baby should you get life insurance?

If you want your life insurance policy to take effect before your baby is born, you should purchase it at least four to six weeks prior to your baby's due date to allow sufficient time for the underwriting process.

You might consider buying life insurance regardless of when you're expecting your first child. The cost of life insurance generally increases as you get older, so the younger and healthier you are when applying for a life insurance policy, the more affordable it may be.

Another practical reason to consider life insurance before starting a family is that you may avoid higher rates due to common pregnancy-induced conditions, such as gestational diabetes. Since some life insurance policies require a medical exam, unexpected conditions resulting from pregnancy could affect your policy rate.

Can you get life insurance if you're pregnant?

Yes, you can, but generally the earlier you get insurance, the better. Insurers will generally look at your overall health, your stage of pregnancy, and if there are any complications. If you are further along in your pregnancy or have complications, or complications with a previous pregnancy, your insurer may postpone your application until after you've given birth. Learn more about getting life insurance while pregnant.

What's the best type of life insurance for new parents?

There are two types of life insurance to consider: permanent life and term life.

Permanent life insurance

Permanent life insurance lasts for the entirety of your life, provided you continue to pay your premiums, and consists of two types: whole life and universal life. Due to its permanence and additional benefits, such as building a cash value, permanent life insurance tends to be more expensive than term life.

Term life insurance

A more affordable option for new parents is term life insurance. This type of policy lasts for a specific number of years and has an expiration date. It doesn't offer additional benefits and acts solely as a life insurance policy, making it a frequent option for families just starting out.

Term life policies can have higher benefit amounts than whole life insurance policies for the same cost or less. If you want to secure enough benefits to raise your child as they grow, even if you aren't around, term life insurance may be the most practical and affordable option.

A 20-year term life insurance policy can cover your child's needs until they turn 18. By the time the policy expires, your child may be living on their own, which means you may no longer need the coverage.

How much life insurance do new parents need?

The amount of life insurance needed is determined by various factors. For instance, if you were to die today, how much money would your spouse need to replace your income? If you aren't married, how much money would your baby's next-of-kin need to care for the child?

According to a report from Investopedia, an estimate for the cost of raising two children from birth to age 17—including the cost of a public, 4-year college education—is nearly $832,200. In addition, the cost to raise a child differs in different states. Also consider inflation when choosing a face value.

Consider speaking with an insurance representative to help determine how much life insurance you may need to provide for your family's future. Our life insurance calculator can also help you estimate how much coverage you need.

Can you get life insurance for a child?

Some providers offer life insurance for children, and coverage may be available at a minimum age of 0 to 14 days, meaning you can take out life insurance for your newborn, child, or teen. Life insurance for children is usually a term or whole life insurance policy where a minor is the insured and their parent or guardian is the beneficiary. If the child passes away while they're a minor, the parents or guardian receive the policy's death benefit.

Are you an expecting parent ready for life insurance?

Compare life insurance quotes online or call 1-866-912-2477 to talk about your options with a licensed representative from Progressive Life by eFinancial.