Life Event
Welcoming a Child
A new dependent triples your life insurance need and compounds disability risk — most parents are underinsured for 5–10 years after birth.
Timing: Lock new term life policy in the second trimester or within 60 days of birth.
Coverage adjustments
Life
Add $500k–$1M term per working parent; 20–30 year terms align with child's dependency window
Disability
Own-occupation LTD covering 60–70% of income
Health
Add child within 30 days of birth — no medical underwriting
Umbrella
Higher liability as household exposure grows
Priorities
- Increase term life to 10–15x income
- Add disability coverage
- Update beneficiaries
- Consider a child rider for funeral expenses
Checklist
- Lock term life rates while young and healthy
- Update beneficiary on every account/policy
- Establish a 529 funded partly by life-insurance peace of mind
- Recalculate emergency fund target
Risk alerts
- Tobacco use within 12 months raises premiums 200%+
- Lapsed group life rarely portable post-employment