A New Parent’s Guide To Life Insurance

Doing just about anything as a brand new parent is, well, tough. My youngest child is just over a year old. And the last year has been one of remembering, “Oh, yes, this is what it’s like to have an infant.”

Between sleep deprivation and dirty diapers, who has time to do things like shop around for life insurance? But life insurance is more important now than ever. So we’ve done some of the shopping around for you!

In this article, we’ll discuss specific life insurance companies and products that might work for your growing family. We won’t dive into issues like how much life insurance you need or why you need to be insured even as a stay-at-home parent. Click the links to check out those topics if you’re unsure how much insurance you actually need.

Instead, we’ll talk here about different companies and products that might be of interest to you as a new parent. A 2015 Bankrate survey showed that 37% of families with children under 18 don’t have any life insurance. And 32% of the ones who do have $100,000 or less in total coverage.

Those are truly scary statistics for our families and children. Don’t let your family be one of the unprotected ones. Use this quick guide to find easy-to-shop-for, affordable life insurance coverage for your family.

One quick note: I’m going to focus on term life insurance here. Whole life insurance is appropriate for some families, but not most. It’s a much more complicated, expensive product that’s just not the right fit for most new parents.

Our Top 5 Picks

1. Winner: Policygenius

Our current favorite option for life insurance is Policygenius, which allows you to compare and buy life insurance the smart way. They win the top spot for being a one-stop shop tool for comparing different types of life insurance policies at once. Policygenius is similar to a traditional life insurance broker because they collect your information and then share with you various policy options with several life insurance firms. You can pick the best coverage for your needs that way. They don’t just send you to one company. It’s great for new parents because they make shopping for term life insurance ridiculously convenient, simple, and quick. You can get options during those 10-minute newborn naps.

Life insurance is an important subject for any family, but it’s also one that can be full of jargon and difficult to understand. Policygenius offers a wealth of useful information to help you make an educated decision. The website includes informative articles on the many forms of life insurance and their fundamentals. There’s even a life insurance calculator to figure out how much coverage you need in your unique situation.

You can use its comparison tools or talk to a live agent. Policygenius will help you figure out what kind of life insurance you need and then offer a variety of options so that you don’t have to compromise. A service like Policygenius provides a lot of value in aggregating the available insurance options and presenting you with the best possible quote. It does the legwork while you take care of the essential things, like the tiny people you’ve brought into this world. You can get fast quotes, compare rates, and find the best policy that ensures your children are always covered.

Read: Policygenius Review

2. Runner-up: Bestow

Our runner-up for best life insurance for new parents is Bestow. Through its online application, you can get term life insurance in a matter of minutes, and filling out the online application allows your coverage to begin immediately. You won’t have to undergo a medical examination, either. It also has a live agent available if you want additional information about the life insurance they offer.

For younger and healthier parents who simply want to get a life insurance policy without the hassles associated with shopping for life insurance, Bestow is an excellent choice.

As a new parent, you might want to consider purchasing a basic term life insurance policy to safeguard your new little one and others close to you if something were to happen to you and they had to take on your end-of-life costs. You’ll also find affordable life insurance coverage from Bestow that fits your budget.

Read: Bestow Review

Our Other Picks

3. Ladder

Ladder term life insurance is extremely flexible and affordable. You can find a life insurance policy for as little as $5 per month. Get a life insurance quote in about five minutes by answering a few personal questions online.

If you change your mind and add or reduce coverage on Ladder at a later time, you can do so at any time. This is an excellent choice if you want to expand your family in the future.

As a new parent with more financial responsibilities, you may want to save money on life insurance. So, it makes sense to get a basic policy from Ladder that fits your current requirements. And, because you have the option of altering your policy at any time, Ladder provides you with flexibility.

Read: Our full Ladder Review

4. Haven Life

Haven Life is backed by MassMutual or its subsidiary C.M. Life, which has great financial ratings. It makes shopping for term life insurance ridiculously simple and quick. However, the online application does take a bit longer than others. It’s more detailed with questions about your medical and even driving history. But that means you’ll have to do less follow-up work to actually get insured.

When an insurer can verify that you’re in generally good health, you’ll pay less each month for your term policies. That’s definitely a good thing. Haven Life also lets you do a quick estimate of how much you might pay for life insurance. If you’re still wavering on whether or not a policy will fit your diapers-are-so-expensive budget, use this tool before you apply.

There are some excellent potential rates, especially if you’re in excellent health. My estimates came back between $18 and $27 per month for a $250,000 policy - and that’s with average health.

5. Sproutt

Like Policygenius, Sproutt can help you shop multiple insurers in minutes. But what makes it unique is that it really wants to reward you for making healthy choices. Its Quality of Life Index (QL Index) looks at five factors: movement (exercise), sleep, emotional health, nutrition, and balance. The higher your QL Index score, the more you may be able to save! With Sproutt, you’ll receive life insurance coverage in 10 minutes or less.

Its goal is to link young parents (30 to 45 years old) with low-cost life insurance through a comparison tool and user-friendly website.

It’s the better option for young and healthy individuals who want to save money on life insurance. If you have any questions about your life insurance requirements or want assistance at any time, you can also contact a live agent. By comparing rates until you find one that works with your budget, you can save money with Sproutt.

Read more: Ethos vs. Sproutt

Our Selection Methodology

So how did we land on this list of excellent life insurance options for new parents? One significant factor is the ease of online application. Since you’re so busy right now, I know it’s important to be able to apply quickly online. Even if you have to take a few follow-up steps, getting that first step done quickly online gives you some momentum in the process.

Note that many companies will offer online quotes only through quote aggregator systems. So you might find a quote from, say, SBLI in an online aggregator. But they won’t give you a direct quote from their website. You’ll have to actually receive a phone call and finish your application to get a quote from the company.

I also looked at things like the types of policies offered. It’s important to be able to compare different policy amounts and terms so you can find one that suits your needs and budget. And I looked at the individual company’s financial ratings. You should never buy life insurance from a company with a less-than-great financial rating. That’s just asking for a policy the company can’t pay out when the time comes.

When shopping around, I ran the numbers for a 32-year-old female in good health. I looked at $200,000 policies and various term lengths. Obviously, pricing was also a consideration.

Factors To Consider

Shopping for life insurance doesn’t have to take forever or be incredibly difficult. Just keep the following factors in mind as you shop around.

Ease of Application

Spending hours applying for life insurance and making medical appointments to get it is no good when dealing with a new baby at home. That’s why ease of application was at the top of my list when creating this review.

Available Options

You don’t really need to shop with an insurance company that offers 10 different term lengths. You just need to find a provider that offers the term and coverage amount you need. If you really need 20 years’ worth of coverage, don’t opt for 15 just because that’s all the insurer in question offers. Find another insurer who will offer what you need.

Financial Rating

Always check out the current financial rating of the company in question. Don’t opt for a company with a rating that’s less than stable. That’s just asking for your potential future claim not to be paid out because the company has gone under.

Cost of Coverage

Paying for really cheap coverage from a poorly-rated company isn’t a good idea. But once you’ve narrowed down your choices to a handful of reliable companies, coverage costs are important. You want to be sure you can afford the coverage in question month after month. Remember, you’ll lose your coverage if you let your policy lapse. So be sure you can pay for the policy even if times get tough.

Final Thoughts

Shopping for life insurance as a new parent can feel overwhelming and even a little scary. After all, it’s coverage that you’ll never use unless you pass away while you’re children are still young. And no parent likes to think about that possibility. However, you’re now responsible for a life other than your own. And you need to be sure you can continue to provide and care for your child should the worst happen to you. That’s why having life insurance as a new parent is absolutely essential.

Related: