Top Life Insurance Provider for New Parents in 2024 (Top 10 Companies)
The top life insurance providers for new parents include Northwestern Mutual, AIG, and Guardian. Term life insurance typically costs significantly less per month than permanent life insurance. Enter your ZIP code to find free rates from life insurance providers in your area.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
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UPDATED: Mar 7, 2024
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UPDATED: Mar 7, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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0 reviewsThe top life insurance providers for new parents are Northwestern Mutual, AIG, and Guardian. In this guide, we explore coverage rates, policy types, and more.
If you’re new to parenting and working to establish financial security, you might be wondering where you can find cheap life insurance for new parents. Becoming a parent is a life-changing milestone that comes with many new responsibilities and concerns.
Our Top 10 Best Companies: Top Life Insurance Provider for New Parents
| Company | Rank | See Pros/Cons | New Parents-Focused Benefits | Additional Features | Best For |
|---|---|---|---|---|---|
 | #1 | Northwestern Mutual | Up To 10% | Up To 5% | Online Convenience |
 | #2 | AIG | Up To 12% | Up To 6% | 24/7 Support |
 | #3 | Guardian Life | Up To 11% | Up To 4% | Vanishing Deductible |
 | #4 | Lincoln Financial Group | Up To 10% | Up To 5% | Safe-Driving Discounts |
 | #5 | MassMutual | Up To 9% | Up To 4% | Multi-Policy Discounts |
 | #6 | Globe Life | Up To 8% | Up To 3% | Bundle Discounts |
 | #7 | Prudential | Up To 10% | Up To 5% | Customizable Policies |
 | #8 | Mutual of Omaha | Up To 9% | Up To 4% | Comprehensive Coverage |
 | #9 | State Farm | Up To 9% | Up To 4% | Local Agents |
 | #10 | Foresters Financial | Up To 8% | Up To 3% | Policy Options |
Parents need to protect their families financially. Even so, you don’t want to rush when buying life insurance, because you could end up paying hundreds of extra dollars each year and thousands throughout your policy. This article will serve as a guide to buying life insurance for young parents.
Ready to learn more about life insurance for new parents? Keep reading or get a head start by entering your ZIP code above to get free quotes from the top life insurance companies near you.
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#1 – Northwestern Mutual: Financial Security Specialist
When considering life insurance for new parents, Northwestern Mutual stands out as a top choice for its competitive rates and tailored solutions to meet growing families' needs.Dani Best Licensed Insurance Producer
Pros
- Up to 10% multi-policy discount: Offers significant savings for bundling multiple insurance policies.
- Up to 5% online convenience discount: Provides discounts for managing policies online, offering ease of access and management.
- Financial security focus: Specializes in providing comprehensive coverage for long-term financial security.
Cons
- Limited online presence: Might lack the robust online tools and resources compared to some competitors.
- Potential premium variability: Premiums may fluctuate based on market conditions and investment performance.
Read more: The Northwestern Mutual Life Insurance Company Review
#2 – AIG: Global Insurance Leader
Pros
- Up to 12% multi-policy discount: Offers substantial savings for bundling multiple insurance policies.
- Up to 6% 24/7 support discount: Provides discounts for round-the-clock customer support, ensuring assistance whenever needed.
- Wide range of coverage options: Offers diverse insurance products to cater to various personal and business needs.
Cons
- Complex policy structures: Policies may be intricate, potentially causing confusion for some customers.
- Higher premium costs: Premiums might be relatively higher compared to some competitors, especially for certain coverage levels.
Read more: AIG Assurance Company Review
#3 – Guardian Life: Deductible Mastery
Pros
- Up to 11% multi-policy discount: Offers significant savings for bundling multiple insurance policies.
- Up to 4% vanishing deductible discount: Provides discounts for safe driving and claim-free periods.
- Strong focus on customer service: Known for excellent customer service and support.
Cons
- Limited coverage options: Might not offer as wide a range of insurance products as some competitors.
- Regional availability: Coverage may be limited to specific regions, potentially restricting accessibility for some customers.
Read more: Guardian Life Insurance Company of America Review
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#4 – Lincoln Financial Group: Secure Driving Partner
Pros
- Up to 10% multi-policy discount: Offers substantial savings for bundling multiple insurance policies.
- Up to 5% safe-driving discounts: Provides rewards for safe driving behavior, promoting road safety.
- Financial stability: Known for its strong financial standing and reliability.
Cons
- Limited online tools: Might lack advanced online tools and resources for policy management.
- Potential premium increases: Premiums may increase over time, particularly for certain coverage types.
#5 – MassMutual: Policy Diversity Specialist
Pros
- Up to 9% multi-policy discount: Offers significant savings for bundling multiple insurance policies.
- Up to 4% multi-policy discounts: Provides discounts for combining various insurance products.
- Flexible policy options: Offers a wide range of insurance products tailored to diverse customer needs.
Cons
- Limited discount options: May not offer as many discount opportunities compared to some competitors.
- Potential underwriting restrictions: Underwriting criteria may be stringent, potentially limiting eligibility for some customers.
#6 – Globe Life: Affordable Protection Provider
Pros
- Up to 8% multi-policy discount: Offers savings for bundling multiple insurance policies.
- Up to 3% bundle discounts: Provides additional savings for combining different insurance products.
- Simplified processes: Known for straightforward and easy-to-understand policy offerings.
Cons
- Limited coverage options: Might not offer as extensive coverage options as some competitors.
- Potentially basic customer service: Customer support resources and responsiveness may not be as robust as larger insurers.
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#7 – Prudential: Customized Coverage Specialist
Pros
- Up to 10% multi-policy discount: Offers significant savings for bundling multiple insurance policies.
- Up to 5% customizable policies discount: Provides flexibility in tailoring coverage to individual needs.
- Strong financial stability: Known for its solid financial standing and reliability.
Cons
- Higher premiums: Premiums may be relatively higher compared to some competitors, especially for certain coverage levels.
- Complex policy structures: Policies may be intricate, potentially causing confusion for some customers.
#8 – Mutual of Omaha: Comprehensive Protection Provider
Pros
- Up to 9% multi-policy discount: Offers savings for bundling multiple insurance policies.
- Up to 4% comprehensive coverage discount: Provides discounts for comprehensive coverage options.
- Reputation for reliability: Known for its long-standing history and reputation for reliability.
Cons
- Limited online presence: Might lack advanced online tools and resources for policy management.
- Potential premium variability: Premiums may vary based on factors such as age and health status.
#9 – State Farm: Diverse Coverage Expert
Pros
- Up to 9% multi-policy discount: Offers savings for bundling multiple insurance policies.
- Up to 4% local agents discount: Provides discounts for accessing services through local agents.
- Wide coverage options: Offers various coverage options tailored for different needs.
Cons
- Limited multi-policy discount: The multi-policy discount may not be as high compared to some competitors.
- Potential premium costs: Premiums might still be relatively higher for certain coverage levels despite discounts.
Read more: State Farm Life Insurance Review
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#10 – Foresters Financial: Policy Options Pioneer
Pros
- Up to 8% multi-policy discount: Offers savings for bundling multiple insurance policies.
- Up to 3% policy options discount: Provides flexibility in choosing from various policy options.
- Strong focus on community involvement: Known for its philanthropic initiatives and community support.
Cons
- Limited coverage options: Might not offer as extensive coverage options as some larger insurers.
- Potentially limited online resources: Online tools and resources may not be as comprehensive as those of larger insurers.
Average Monthly Life Insurance Rates for New Parents
| Insurance Company | Full Coverage | Minimum Coverage |
|---|---|---|
| Northwestern Mutual | $195 | $110 |
| AIG | $180 | $90 |
| Guardian Life | $215 | $108 |
| Lincoln Financial Group | $235 | $120 |
| MassMutual | $215 | $108 |
| Globe Life | $135 | $68 |
| Prudential | $255 | $133 |
| Mutual of Omaha | $200 | $100 |
| State Farm | $165 | $80 |
| Foresters Financial | $190 | $80 |
Keys to Buying Life Insurance as a Parent
If you’re a new parent, and it’s your first time shopping for life insurance, there’s a good chance you aren’t familiar with all the fine details relating to a life insurance policy. There are a handful of major factors to consider when choosing a life insurance policy, such as:
- Your income and equity
- Your monthly budget
- The type of job you have
- Whether your spouse is working
- If you have employer-provided life insurance
- If you can afford an unexpected funeral
While there are certainly more factors to consider, above you’ll see a handful of the most important ones that can dictate the type of life insurance you get, the amount of coverage you get, and any special life insurance riders that may make your policy more flexible given your situation.
What is the best type of life insurance for parents with young children?
The best type of life insurance for new parents can vary based on some of the aforementioned factors. Some people might say that permanent life insurance options are better, while others may believe a term life insurance policy is perfectly fine.
For most people, budget plays a big role in the type of policy they will be willing to invest in. Generally speaking, term life insurance policies will be fairly affordable for young parents, since age is a major pricing variable for life insurance policies.
Whole life insurance and universal life insurance are two common types of permanent life insurance that build cash value. The cash value accrued by these policy types serves somewhat like a separate savings account, although that value isn’t accessed quite as easily for the policyholder in many cases.
Beyond the cash value component, term life insurance and permanent life insurance policies differ greatly in their respective monthly rates. Permanent life insurance tends to be much more expensive every month in comparison.
At the end of the day, either policy will work, but each one has unique features that may suit your needs more than the other. Below, we have highlighted a few key details relating to each policy type.
Term life insurance
- More affordable each month
- No cash value component
- Large death benefit potential
Permanent life insurance
- Expensive monthly premiums
- Builds cash value that can gain interest
- Smaller death benefit
Cash value has its pros and cons, but realistically, your budget will likely be the key determinant for which policy type is more beneficial for your situation. You may want to read about what happens to the cash value of a life insurance policy if you still aren’t sure which is best.
How much is life insurance for new parents?
Not all parents will pay the same amount for life insurance. We’ve already highlighted the fact that the policy type is one major factor that determines how much you’ll pay. Otherwise, your job and health can be other notable factors.
Assuming you’re looking for the most affordable policy, term life insurance would most likely be your best bet. Below, we’ll provide sample rates from popular life insurance companies to give you a better idea of what you could pay and which companies are most affordable. (For more information, read our “Best Term Life Insurance Companies“).
Sample 20-year, $250,000 Term Life Insurance Policies for Males
| Age | Lincoln National | Prudential | Transamerica | MassMutual | Principal | State Farm | John Hancock | AIG | Cincinnati |
|---|---|---|---|---|---|---|---|---|---|
| 25 | $13.15 | $19.03 | $13.98 | $15.00 | $13.78 | $23.27 | $14.21 | $12.90 | $14.52 |
| 30 | $13.22 | $20.35 | $15.48 | $15.23 | $14.00 | $24.59 | $14.79 | $12.97 | $14.52 |
| 35 | $13.85 | $20.78 | $19.14 | $15.88 | $14.22 | $26.09 | $16.86 | $13.53 | $17.38 |
| 40 | $17.94 | $24.50 | $26.66 | $20.68 | $18.55 | $33.72 | $22.09 | $18.12 | $23.76 |
| 45 | $27.85 | $29.97 | $35.26 | $32.40 | $28.13 | $45.47 | $31.54 | $28.28 | $34.54 |
Above, you can get a feel for how much new parents might pay for term life insurance, assuming they’re healthy. If you’re looking for the most affordable term life insurance for young parents, it appears that AIG, Principal, and Lincoln National could be amongst the cheapest.
Of course, these sample rates are provided assuming that the dad is an otherwise healthy adult with no major health or occupational concerns. A dangerous occupation can classify policyholders with substantial risk, causing life insurance premiums to rise.
The rates above were also provided for a 20-year, $250,000 life insurance policy. This may or may not be enough coverage for you, depending on the amount of debt you have, the amount of money you make, and so on.
Below, you can see how rates vary by coverage amount between the cheapest three options in our first sample rates chart.
Sample 20-year Term Life Insurance Rates for New Dads
| Age | Lincoln, $100,000 | Lincoln, $250,000 | Lincoln, $500,000 | Principal, $100,000 | Principal, $250,000 | Principal, $500,000 | AIG, $100,000 | AIG, $250,000 | AIG, $500,000 |
|---|---|---|---|---|---|---|---|---|---|
| 25 | $11.27 | $13.15 | $19.96 | NA | $13.78 | $14.88 | $10.94 | $12.90 | $19.57 |
| 30 | $11.42 | $13.22 | $20.31 | NA | $14.00 | $15.05 | $10.94 | $12.97 | $19.92 |
| 35 | $11.91 | $13.85 | $21.75 | NA | $14.22 | $15.23 | $11.17 | $13.53 | $21.28 |
| 40 | $11.91 | $17.94 | $30.32 | NA | $18.55 | $19.43 | $14.14 | $18.12 | $29.92 |
| 45 | $17.13 | $27.85 | $49.05 | NA | $28.13 | $29.31 | $17.59 | $28.28 | $48.60 |
Above, you can see how the rates vary between three competitive life insurance companies. If you only needed $100,000 in coverage, both AIG and Lincoln offer affordable rates, but you may not be able to get a policy with Principal. On the other hand, Principal is the cheapest for a $500,000 policy between these three options.
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To make matters more confusing, the cheapest or best whole life insurance for young parents will likely come from an entirely different trio of companies. This is why it’s always important to compare rates and products from multiple insurance companies.
Read more: Principal National Life Insurance Company Review
More About Life Insurance for New Parents
Getting an affordable life insurance policy shouldn’t be difficult, even if you’re a new parent. Some additional features might be worth investing in before you finalize a policy, however.
First and foremost, a children’s or child rider could be a good investment. In short, this life insurance rider is designed to provide a small monetary death benefit for children in the event of an unforeseen death. The death benefit should be enough to cover a funeral and other related expenses.
Many people don’t realize that a funeral can cost roughly $10,000. If that type of expense would be a major problem for your family, a children’s rider might be a worthwhile addition to your life insurance policy. AIG, Lincoln, and Principal all offer this policy feature in some capacity.
Beyond a children’s rider, parents may want to consider other life insurance riders, such as an accidental death rider if one of them has a dangerous job or hobby. This rider can increase the value of a death benefit if you suddenly die in a qualifying accident.
Other riders could be applied for new parents, so you will likely want to ask any prospective insurers which they offer and how much it will cost to include them on your policy. A small increase in your monthly premiums could pay large dividends in the future. (For more information, read our “How Life Insurance Dividends Work“).
Read more:
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Case Studies: Top Life Insurance Provider for New Parents
Case Study 1: AIG
John and Sarah, a young couple in their late 20s, recently became parents to a baby girl. They were looking for an affordable life insurance policy that would provide adequate coverage for their growing family.
After comparing quotes from several insurance companies, they found that AIG offered competitive rates for term life insurance. They were able to secure a 20-year, $250,000 policy with monthly premiums of $12.90, providing them with the financial security they desired.
Case Study 2: Principal
Mark, a 35-year-old father, wanted to ensure the financial stability of his family in case of any unforeseen circumstances. He decided to explore different life insurance options and found that the Principal offered favorable rates for a 20-year term life insurance policy.
With Principal, Mark obtained a $500,000 coverage plan at a monthly premium of $19.43. This allowed him to have peace of mind knowing that his family would be financially protected.
Case Study 3: Lincoln National
Emily and Michael, both 25 years old, were excited to welcome their first child into the world. As responsible parents, they understood the importance of securing life insurance.
After conducting thorough research, they discovered that Lincoln National offered affordable rates for term life insurance policies. They opted for a 20-year, $250,000 coverage plan with monthly premiums of $13.15, providing them with the necessary protection for their new family.
Life Insurance for New Parents: The Bottom Line
New parents will need to thoroughly evaluate their finances to determine which type of life insurance policy they can and should buy. It’s important to secure enough coverage so that your family is still able to function financially if one or both parents die unexpectedly.
You should have a better understanding of life insurance options for new parents by now. Before you go, enter your ZIP code below to get free quotes from the top life insurance companies in your area.
Frequently Asked Questions
Why is life insurance important for new parents?
Life insurance is important for new parents because it provides financial protection for your family in the event of your untimely death. It ensures that your loved ones are financially supported, able to pay off debts, cover daily expenses, maintain their lifestyle, and potentially fund future expenses like education or mortgage payments.
What factors should new parents consider when choosing a life insurance provider?
When choosing a life insurance provider as new parents, consider the following factors:
- Financial strength and reputation: Look for insurance companies with a strong financial rating and a good reputation for customer service and claims handling.
- Coverage options: Assess the range of coverage options available, such as term life insurance, whole life insurance, or universal life insurance, and determine which best fits your needs.
- Policy cost: Compare premiums from different providers to find a balance between affordability and coverage.
- Underwriting process: Understand the underwriting process of each provider, as it can vary in terms of requirements, medical exams, and turnaround times.
- Additional benefits or riders: Some insurers offer optional riders or benefits that can enhance your coverage, such as disability riders, critical illness riders, or accelerated death benefits.
Which life insurance provider is considered a top choice for new parents?
There are several reputable life insurance providers that are often recommended for new parents. Some of the top choices include:
- Prudential: Known for its financial strength and diverse range of policy options, Prudential offers term life, whole life, and universal life insurance with flexible coverage amounts and customization options.
- New York Life: With a long-standing history and excellent financial ratings, New York Life provides various life insurance options and has a strong reputation for customer service.
- Northwestern Mutual: This provider offers comprehensive coverage options, including term life and permanent life insurance, and is well-regarded for its financial strength and commitment to policyholders.
- MassMutual: Known for its financial stability, MassMutual offers a variety of life insurance policies and has a reputation for excellent customer service.
How much life insurance coverage should new parents consider?
The amount of life insurance coverage for new parents depends on various factors, including income, debts, lifestyle, future expenses, and financial goals. A common rule of thumb is to have coverage that is at least 10-15 times your annual income. However, it’s advisable to assess your specific needs and consult with a financial advisor or insurance professional who can help you determine the appropriate coverage amount for your family’s unique situation.
How much life insurance coverage should new parents consider?
The amount of life insurance coverage for new parents depends on various factors, including income, debts, lifestyle, future expenses, and financial goals. A common rule of thumb is to have coverage that is at least 10-15 times your annual income. However, it’s advisable to assess your specific needs and consult with a financial advisor or insurance professional who can help you determine the appropriate coverage amount for your family’s unique situation.
How can new parents find the best life insurance provider for their needs?
To find the best life insurance provider for your needs as new parents, consider the following steps:
- Assess your coverage needs: Determine the amount of coverage you require and the duration of coverage (e.g., term life insurance).
- Research reputable providers: Research and compare the offerings, financial strength, customer reviews, and claims processes of different life insurance providers.
- Obtain multiple quotes: Request quotes from several providers to compare premiums and coverage options.
- Review policy details: Carefully review the policy details, including coverage limits, exclusions, riders, and any additional benefits or features.
- Consult with an insurance professional: Seek guidance from an insurance agent or broker who specializes in life insurance. They can provide personalized advice and help you navigate the available options.
- Consider customer reviews and ratings: Read reviews and check ratings of the shortlisted providers to gain insights into their customer service, claims handling, and overall customer satisfaction.
- Evaluate financial stability: Assess the financial strength and stability of the insurance company by reviewing their ratings from reputable rating agencies, such as A.M. Best or Standard & Poor’s.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
