Life Insurance for Parents: 6 Key Questions You Should Ask

Parenting turns you into a backup-planning pro. Ask me how I know to buy two extra of the cuddly toy my kid won’t sleep without. Or why it’s smart to bring a change of clothing for each child before embarking on a long car ride. Thinking about the ideal case and how to handle plan B (or C) is part of keeping up with kids’ changing needs.

The biggest backup plan, of course, is figuring out what to do if you or your partner isn’t around anymore. Along with your last will and testament, a life insurance policy is one of the most important tools to help provide for your loved ones if you pass away.

Let’s look at the specific questions, concerns and opportunities when it comes to life insurance for parents.

1. When Should Parents Think About Life Insurance?

This question isn’t really about how likely you are to pass away. A better question to ask is who depends on you financially and might go without the things they need if you were gone.

As soon as you become a parent, there’s a little person who depends on you completely. Life insurance is almost like the financial version of a car seat—you hope you’ll never need to put those crash-safety features to the test, but it can be helpful to know the potential protection is there. And just like you’d install a car seat in both parents’ cars, it’s smart to have policies in place for both of your child’s parents, even if only one of you has a salary to replace.

Life insurance isn’t about replacing earned income, dollar for dollar. It’s meant to provide resources for the people you leave behind. Stay-at-home partners may handle a major share of childcare, homework help and household upkeep that provides a substantial economic benefit for the household (one-on-one childcare alone is worth a fortune!). They also provide stability and emotional support in a way that’s tougher to quantify.

2. What Kind of Life Insurance Is Best for Parents?

Different parents make different life insurance decisions, and that's OK. When figuring out how to get life insurance, one of the first decisions you’ll make about life insurance is what type of policy fits your needs best. Life insurance falls into two main categories: term life and permanent life insurance.

Term life insurance is active for a specific period of time, which you choose when you’re buying the policy. The idea is that you have coverage during the years when your death would have the most serious financial impact on your family (e.g., while your kids are young, or while you’re paying a mortgage on your home). If you outlive the term, you won’t collect any money from the policy.

Permanent life insurance comes in a few variations, but one of the most common is whole life insurance. Whole life insurance provides death benefit coverage for your entire life, in addition to having the potential to build a cash value accumulation component so long as you stay current on your premiums. If your child has a disability and will need lifelong care, whole life insurance may make the most sense for you. That’s because many parents choose term life insurance because they assume that after a set number of years, their kids might be financially independent; if you don’t share that assumption, you might want lifetime coverage to help protect those you love. Another reason some families choose whole life is if they have a very large estate—in some cases they might seek lifetime coverage to make sure that, whenever they pass away, their beneficiaries might have the option to use the death benefit to help cover estate taxes.

The main advantage of whole life insurance is that it lasts your entire lifetime. A major advantage of term life insurance is it’s substantially cheaper for the same coverage amount. Some parents opt to divide their coverage across both types to get some of the best of both worlds. If cash flow is tight or you haven’t decided whether you’ll need a whole life policy, you might choose to look into a convertible policy, which starts as term life and offers the option to convert into a whole life policy down the line. It’s worth noting that there are stipulations and rules around converting, so you should discuss with a financial professional if this is something you’re considering.

Different situations might call for different types of insurance. For example, members of the military may find coverage at companies that cater specifically to those in the armed forces, whereas military spouses might opt for a supplemental policy.

3. What Coverage and Term Length Should Parents Get?

How much life insurance you need varies from family to family. Some experts swear by the income replacement method of calculating coverage. With this model, you multiply your annual income by 10 to get an estimate of your coverage goal.

Some financial professionals may recommend a little more nuance. The “analyze your needs” school of thought suggests calculating your debts (including mortgage), how much you want to contribute toward college costs and the gap between your spouse’s income and household expenses, among other factors.

Your current finances, your plans for your kids’ future and your personal peace of mind are all important factors to consider that may help you decide what coverage feels right.

Next up is how long you want to have that coverage in effect (if you’re considering a term life policy). The rule of thumb is to think about how long it will take to reach major goals. If your kids are little, a 20-year term might cover you through their college years. Parents expecting to retire in 15 years or whose kids are already in middle school may decide that they are best served by a 15-year or even a 10-year term policy.

4. How Much Does Life Insurance Cost if You’re a Parent?

When you’re ready to start shopping for a life insurance policy, make sure you and your partner are on the same page about the type of policy and amount of coverage that makes sense. Sometimes, one partner is more concerned than the other about how premiums will fit into your family budget.

Premium rates vary depending on your age, financial situation, health and lifestyle. A life insurance underwriter’s job is to assess details in your application and determine your risk. Smoking or working in a high-risk job (e.g., firefighter) can increase your risk and therefore premiums. If you’re young and in excellent health, those factors can help put you in a more preferred category.

The term and coverage you choose also affects rates. For example, according to a quote from Fabric by Gerber Life in June 2025, a 30-year-old woman who lives in Iowa, doesn’t smoke and is in excellent health may pay as little as $7.95 per month for a 10- year, $100,000 policy.

You may notice many insurance providers require a medical exam as part of the underwriting process. Usually, that means sending a medical professional to your house or office. If the thought of having someone in your home during a pandemic makes you antsy or arranging childcare would be tricky (or you just hate needles), there might be an alternative solution. No-exam life insurance policies may let eligible applicants skip the exam and answer health questions instead.

5. Should You Get Life Insurance While Pregnant?

Nothing changes your body like pregnancy. Considering that your health (including weight) plays a role in how much you’ll pay for life insurance, you might wonder if you should even apply at all while you’re expecting.

In some cases, if you’re having a healthy pregnancy, you might still qualify for the same rates you’d get if you weren’t pregnant. Weight matters in your application, but underwriters generally consider your weight from before, during and after pregnancy to get a more complete picture.

If you’re having a more challenging or complicated pregnancy and dealing with health issues like gestational diabetes or preeclampsia, the insurance provider might put your application on hold to see if the condition resolves after you give birth.

6. Who Should Parents Choose as Their Beneficiary?

You want your policy to help protect your kids’ financial future. The problem is, minors can’t inherit in their own name. How do you make sure the death benefit money will really go toward your kids’ care? Choosing a life insurance beneficiary is an important decision to make sure your policy works according to your wishes.

Partnered parents often have the easiest time with the beneficiary line. Naming your spouse (or co-parent, if you’re unmarried but parenting together) is an easy choice for many people.

Other families have more complex arrangements to consider. If you have children from a previous marriage, you might want your ex to receive a portion of your life insurance benefit. Single parents often consider setting up a trust for minor children to ensure the money goes to their care. In other cases, some parents may consider naming their own parents or a trusted loved one who will take care of their children.

You can change your beneficiary at any time, so it’s OK if you don’t have every last detail figured out. Choose someone you trust and remember to update your policy if your situation changes, but remember that you have the flexibility to adjust your beneficiary as needed.

Securing your family’s financial future is just as important as setting up the nursery or managing your kids’ extracurricular schedule—and the benefits of life insurance keep going long after onesies are packed away or piano lessons are dropped for robotics club. No matter what your next plans are for your family, a life insurance policy that’s based on your coverage needs and timeline can help you feel supported along the way.

Fabric exists to help young families master their money. Our articles abide by strict editorial standards. This article has been reviewed and approved by a compliance professional who is a licensed life insurance agent.

Information provided is general and educational in nature, is not financial advice, and all products or services discussed may not be offered by Fabric by Gerber Life  (“the Company”). The information is not intended to be, and should not be construed as, legal or tax advice. The Company does not provide legal or tax advice. Consult an attorney or tax advisor regarding your specific legal or tax situation. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. The Company makes no warranties with regard to the information or results obtained by its use. The Company disclaims any liability arising out of your use of, or reliance on, the information. The views and opinions of third-party content providers are solely those of the author and not Fabric by Gerber Life.