If You have a Child on the Way, Don't Delay Getting Life Insurance
One of the most important responsibilities young parents have is to ensure the financial security of their children in the event that one or both parents should die. It’s not a question of “if parents should buy life insurance;” the only question is “how much?” The cost of raising a child today is approaching $300,000, which doesn’t include the cost of a college education. If one parent is left to raise the children, the cost can increase if there are additional child care expenses, or reduced work hours.
Life insurance should be purchased with the worst-case scenario in mind, which is that death could occur today, and your spouse could be raising your children for the next 20 years. At a minimum, parents should own enough life insurance to cover ten years of lost income, and that assumes that the surviving spouse is able to maintain his or her income.
Don’t wait until after a child is born to purchase life insurance. You should start looking for a policy the moment you know the child is on the way. In fact, it’s recommended that both spouses purchase a policy before you become pregnant, as it is sometimes more difficult to get preferred coverage during pregnancy. Although, if your policy is rated due to pregnancy, most life insurers will reevaluate after the child’s birth and offer a better rating.