Checklists / Life
New Parent Life Insurance Checklist
The single best time to buy life insurance is before the baby arrives, when premiums are lowest and underwriting is easiest. The second best time is now.
Coverage amount
- 10× annual income is the floor for the primary earner
- Add $250–500k for stay-at-home parent (childcare costs add up fast)
- Add $200k per child for college (or use a 529 alongside)
- Add the mortgage balance
- Subtract group life through work (it's usually portable but small)
Type of policy
- 20- or 30-year term life is the right answer for 95% of families
- Skip whole life unless you've maxed all retirement accounts and have a specific estate planning need
- Add a child rider ($10–25k of coverage on each child for ~$60/year)
Riders worth considering
- Waiver of premium (waives premiums if you become disabled)
- Accelerated death benefit (early payout on terminal diagnosis — usually free)
- Conversion privilege (lets you convert term to permanent without new underwriting)
Other paperwork
- Update beneficiaries on retirement accounts
- Name a guardian in your will
- Set up a revocable trust if assets exceed $1M
- Buy disability insurance — disability is more likely than death during working years
- Increase auto liability and add umbrella