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A new baby means new financial dependents. Updating beneficiaries takes 10 minutes but protects your family for decades.
When you had your policy, your beneficiary was probably your spouse. Now with a child, you need to ensure your family is protected if something happens to both parents, or structure payouts appropriately.
57%
Policies with Outdated Beneficiaries
Never updated after life events
10-12x
Recommended Coverage
Your annual income
$25/mo
Cost for $500K Term
Healthy 30-year-old
Beneficiary Options for New Parents
| Feature | Option | Best For |
|---|---|---|
| Spouse as Primary | 100% to spouse | Married couples, simple |
| Trust as Primary | 100% to family trust | Control over distributions |
| Split Primary | 50/50 spouse + trust | Blended families |
| Child as Contingent | If spouse predeceases | All families (via trust) |
Never Name a Minor as Direct Beneficiary
Employer Group Life
Log into HR portal or contact benefits department. Takes 5 minutes.
Individual Term Policies
Call your agent or update online. Most insurers have beneficiary change forms.
401(k) & IRA Accounts
These pass by beneficiary designation, NOT by will. Update separately.
Bank Accounts (POD)
Add Payable on Death designation at your bank if desired.
Replace Income (10-12× salary)
Enough to support family until youngest child is 18.
Mortgage Payoff
So surviving spouse can stay in the home.
College Funding
$100K-$200K per child for future education.
Childcare Costs
If stay-at-home parent dies, survivor needs childcare ($15K-$25K/yr).
Don't Forget the Non-Working Spouse
Key Takeaways