Best Life Insurance for Parents with Newborns
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Many people are excited to become parents. Raising a child can bring couples closer together and result in fond memories. Parents with newborns can be on the path to some of the best years of their lives.
A good insurance policy can give your child extra protection during these critical years. Insurance policies can minimize the financial burden or worst-case scenarios. Some spouses pass away before their children become adults. In this scenario, the surviving spouse must juggle managing a household and raising a child with one income instead of two.
There are too many factors out of your control, and an insurance policy can offer financial protection for your loved ones if any of those scenarios unfold. Ideally, the insurance policy never gets claimed, and the premium payments end up being money down the drain. However, it's good to have extra protection. These are some policies new parents may want to consider.
In this article
Overview of the best life insurance for parents with newborns
Life Insurance for Parents with Newborns | Best for |
Haven Life | Affordability |
State Farm | Comparing Policies |
Lincoln Financial | Dedicated Team |
Prudential | No Medical Exam Requirement |
Pacific Life | Older Applicants |
AIG | International Applicants |
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
Best life insurance for parents with newborns
Haven Life
Haven Life offers affordable and easy-to-understand insurance policies. Consumers can discover the monthly premium they qualify for within a minute. The insurer offers term life insurance policies ranging from 10-30 years in increments of five (25-year term insurance policies are not available).
You can get coverage ranging from $100,000 to $3 million. Haven Life recommends getting a term life insurance policy that is 5-10 times your annual salary. Applicants can skip the medical exam if they are younger than 59 years old and have less than $1 million in coverage. Under this arrangement, the policy can begin immediately. However, taking a medical exam can lower your premiums.
Haven Life offers additional policies that protect your income. Disability income insurance and annuities are two of the resources that can give your loved ones an extra blanket of financial protection.
- Cost: $20.19 monthly for a 20-year term life insurance policy for a 30-year-old seeking $500,000 in coverage.
- Where to find: Haven Life
- Accessibility: All 50 U.S. states
State Farm
State Farm is a renowned insurance company that has been around since 1922. The company offers several term life insurance policies that range from 10-30 years. Policyholders have the option to add a waiver of premium for disability to their life insurance policies. You can also add coverage for your spouse and eligible children.
If you request a quote, you can quickly compare the premium against policies with different coverage sizes and durations. For instance, if you request a 20-year term life insurance policy, you can see the premium for 10-year and 30-year term life insurance policies.
Consumers can see how their premiums would change if they raise or lower their coverage without filling out additional forms. You then have to send the quote to an agent to see if you will receive that premium. The premiums from State Farm and other insurers serve as guides rather than guaranteed numbers.
- Cost: $28.29 per month for a 20-year term life insurance policy for a 30-year-old seeking $500,000 in coverage.
- Where to find: State Farm
- Accessibility: Every U.S. state except Massachusetts, New York, or Washington.
Lincoln Financial
Lincoln Financial has been offering insurance policies since 1905. The company has several life insurance policies available, such as term and whole life insurance. The Lincoln TermAccel feature makes it quick and easy to apply for term life insurance.
You can skip medical exams if you meet a few qualifications. Applicants receive information about their policies in as little as two days. You will receive your insurance policy far faster from Lincoln Financial compared to most insurance firms.
The coverage ranges from $100,000 to $2.5 million. Consumers who are 18-60 years old can qualify for life insurance policies. You can get coverage into your later years if you get a 30-year term life insurance policy when you are 59 years old. Lincoln Financial provides policyholders with a dedicated team for larger policies.
- Cost: $28.29 per month for a 20-year term life insurance policy for a 30-year-old seeking $500,000 in coverage.
- Where to find: Lincoln Financial
- Accessibility: Every U.S. state except for New York
Prudential
Prudential is one of the oldest insurance companies that is still standing. The company got its start in 1848 as "The Prudential Mutual Assurance Investment and Loan Association." Prudential is much easier to remember.
Prudential helps people get quick quotes without any medical exam requirements. Granted, a medical exam can help you secure a lower premium, but some people may prefer to avoid the exam due to existing health conditions.
Unlike most insurance companies, Prudential offers policies with coverage as low as $30,000. The lower coverage will make the policy more affordable, but $30,000 may not do as much as you would like. You can obtain a life insurance policy that is over $1 million if you need extra protection.
- Cost: $34.82 per month for a 20-year term life insurance policy for a 30-year-old seeking $500,000 in coverage.
- Where to find: Prudential
- Accessibility: All 50 U.S. states
Pacific Life
Pacific Life is a California-based insurance company that has been around since 1868. The company's history extends beyond 150 years.
Pacific Life has several life insurance policies, such as term life, cash value, whole life, variable universal life, universal life, and indexed universal life. The insurer also helps with estate planning.
Pacific Life has term insurance policies that range from 10-30 years. The company recently received an A+ strength rating from A.M. Best. The company has various calculators that help people determine how much life insurance they need and how retirement savings translate into income.
Pacific Life lets you convert a term life insurance policy into an eligible cash value policy. Consumers can decide to pay the premium monthly, quarterly, semi-annually, or annually. The 10-year term life insurance policy is notably available for 75-year-olds. Most insurers do not accept applicants who are over 60 years old. You have to contact a representative to receive a premium quote.
- Cost: You have to contact a representative to get information about the premiums.
- Where to find: Pacific Life
- Accessibility: Every U.S. state except for NY.
AIG
The American International Group, more commonly known as AIG, has been offering insurance policies since 1919. The insurer offers various life insurance policies and offers flexibility for international applicants.
While many insurers operating in the United States only issue policies to people in the country, AIG serves over 70 countries. AIG was started in Shanghai, China, and only began to offer insurance for Americans in 1995.
The coverage for AIG varies. You can get a term life insurance policy for as low as $100,000 or as high as $10 million. Consumers can select term life insurance policies ranging from 10-30 years in increments of five. The insurer even offers a 25-year term life insurance policy, which many insurers skip. AIG lets policyholders decide on monthly, quarterly, semi-annual, or annual payments.
- Cost: $35.65 per month for a 20-year term life insurance policy for a 30-year-old seeking $500,000 in coverage.
- Where to find: AIG
- Accessibility: All 50 U.S. states
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
Best life insurance for parents with newborns summary
Life Insurance for Parents with Newborns | Term Life Insurance Range | Premium for 20-year term (30-year-old male) | Availability |
Haven Life | 10-30 years | $20.19/mo | All U.S. states |
State Farm | 10-30 years | $28.29/mo | Every U.S. state except MA, NY, and WA |
Lincoln Financial | 10-30 years | $19/mo | Every U.S. state except NY |
Prudential | 10-30 years | $34.82/mo | All U.S. states |
Pacific Life | 10-30 years | Contact a representative | Every U.S. state except NY |
AIG | 10-30 years | $35.65/mo | All U.S. states |
FAQs
Should new parents get life insurance?
Life insurance for both partners or the top earner minimizes your family's financial risk. There are too many variables outside of your control that can lead to a worst-case scenario. Families should assess if they can cover the premiums, as missing a payment can make the policy void.
Does whole life insurance or term life insurance make more sense for new parents?
Whole life insurance is more expensive but ensures your child receives a payout. Term life insurance expires within a set amount of time but also has lower premiums. Some parents may want to consider a term life insurance policy that expires when their children become adults.
What factors influence life insurance premiums?
Your age, health, coverage, any risky activities (i.e., riding a motorcycle or skydiving), and the length of the term are some of the factors that influence life insurance premiums.
Why should (or shouldn't) you use life insurance?
A life insurance policy only takes effect if a policyholder passes away during the term. Whole life insurance does not have any time limit as long as you continue to pay the premium.
Life is filled with uncertainties and many things that we cannot control. Families should consider how the household's finances would be impacted if one of them suddenly lost their job. That's the financial reality people face if they lose their partner early.
Raising a child on one income instead of two incomes is more difficult. Life insurance policies offer some protection from this scenario. You can't replace a loved one, but receiving a large payout can give the family more time to go through the grieving process.
The policy payout can make it easier for the remaining parent to raise good children. Without a life insurance policy, the remaining spouse may have to pick up a second job, which means less time to spend with the children. The spouse could also be forced to move to a more affordable area and uproot the children's experiences in the area.
A life insurance policy isn't as useful if the family already has a large portfolio that can cover their finances. People who live well below their means and have low costs of living also may not see the point of life insurance.
You can also opt for a term life insurance policy to secure lower premiums. These policies are less useful when your children become adults and learn how to take care of themselves. A 10-15-year term can protect your family as your children go on the path to becoming mature adults.
It is also important to consider your ability to pay for life insurance. If you cannot cover the premiums, the policy will no longer work. If you take out a policy, you should feel comfortable about paying it off each month and covering your other expenses.
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
The bottom line
A life insurance policy can offer significant financial coverage for your loved ones if you pass away. While it's ideal to never be in the scenario where you or a loved one can make a claim, it's a financial safeguard that helps new families. A life insurance policy can help families continue to cover the bills even if a spouse passes away.
Families should consider how much financial protection they want and what type of life insurance policy makes the most sense for them. Requesting more coverage over a longer time frame will result in higher premiums. Some people want lengthy insurance policies, while others only want enough coverage until their children become adults.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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