Life insurance before baby arrives: a BC guide

Ask around a prenatal class in Burnaby and you'll hear the same plan: "We'll sort out life insurance once the baby's here." Nothing feels urgent until the person you're protecting actually exists. But life insurance isn't something you buy the same day. First comes the application, then underwriting, and the policy only starts once it's issued and the first premium is paid. Start that in the newborn fog and the file sits on the kitchen counter for a year.

The fix isn't glamorous, but it works. The paperwork is the reason to start early. The coverage need isn't.

The weeks before the due date are the easy weeks

You still have evenings. You can book a paramedical exam without arranging childcare, and read a policy summary in peace. Insurers also assess you on your age and health at the time you apply, and both of those can change while you wait.

The numbers point the same way. Statistics Canada counted 365,737 live births in Canada in 2024, up 3.7 per cent from the 352,644 reported for 2023. In the same release, mothers aged 35 and older accounted for 27.1 per cent of all live births, compared with 16.1 per cent in 2000. As of mid-September 2026, those 2024 figures are still the latest full-year numbers. Canadian parents are starting later on average, and age is one of the things every insurer prices on. Waiting always has a cost.

Plan for the leave, not just the worst case

Here's the 2026 detail most expecting parents in Metro Vancouver bump into first. EI maternity and standard parental benefits pay 55 per cent of your average insurable weekly earnings, up to a maximum of $729 a week in 2026. Extended parental benefits pay 33 per cent, up to $437 a week.

That matters for life insurance in two ways. First, any premium you commit to should still be comfortable during the leave months, not just when both paycheques are coming in. Second, if your employer tops up your leave or keeps your group benefits going, find out in writing. Don't assume.

What the industry actually pays out

It's fair to ask whether this money ever actually gets paid. Canada's life and health insurers paid $18.6 billion in life insurance benefits in 2024, part of a record $143.3 billion in total benefits and retirement payments, according to the Canadian Life and Health Insurance Association. That's an industry-wide figure, not a promise about any one claim.

Your group plan at work is a floor, not a plan

Most expecting parents I meet in Vancouver and New Westminster already have some coverage through work. That's a real asset, and worth reading closely. Group life is usually tied to your job, often set as a multiple of salary, and it typically ends when the job does. If you switch employers, get laid off, or take an extended leave, check your benefits booklet rather than assuming it follows you.

Pull the booklet out before the baby comes and write down two things: the amount, and what happens to it if you leave.

The BC detail that catches new parents off guard

Under BC's Insurance Act, naming a beneficiary does something powerful. Section 65 says that if a beneficiary is designated, the insurance money "is not part of the estate of the insured and is not subject to the claims of the creditors of the insured." The money goes to the person you named, outside the estate.

Here's why that matters in dollars. BC charges probate fees on the value of an estate. Under the Probate Fee Act, no fee is payable if the estate doesn't exceed $25,000. Above that, it's $6 for every $1,000 or part of $1,000 by which the estate exceeds $25,000 but is not more than $50,000, and $14 for every $1,000 or part of $1,000 above $50,000. Insurance money paid to a named beneficiary sits outside that calculation.

Now the trap. Plenty of new parents name the baby as beneficiary without a second thought. Section 88 of the Insurance Act sets out what happens when insurance money is payable to a minor. Within 30 days of receiving the required evidence, the insurer must pay the money in trust for the minor to a trustee appointed for that money by the insured "in a contract or by a declaration," or, if no trustee has been appointed, to the Public Guardian and Trustee.

Read that again. If you name your child and don't appoint a trustee, a government office manages the money. According to the Public Guardian and Trustee, in most cases its role as trustee ends at age 19, when the funds are released to the youth. That may not be what you pictured. The alternatives are to name your spouse or partner, to appoint a trustee in the policy or by declaration, or to set up a trust in your will. A BC estate lawyer can help with this alongside naming a guardian.

What to decide before the due date

• Who depends on the income, and for how long. A mortgage in Metro Vancouver, childcare, and the years until your child finishes school are usually the three big drivers.
• Both parents, not just the higher earner. A stay-at-home parent's work would cost real money to replace. Put an honest number on it.
• Term length. Match it to what you're covering, whether that's the mortgage amortization or the years until your youngest is independent.
• Beneficiary and trustee. Decide both together, not just the first one.
• Your will and guardianship. Insurance without a will leaves half the plan unwritten.
• What happens if you change jobs. If most of your coverage is group coverage, an individual policy is the part that stays put.
• Your leave budget. Test the premium against your EI income, not your full salary.

If the insurance company itself fails

Assuris is the industry-funded organization that steps in when a member life insurer becomes insolvent. For term life, Assuris states that if your company fails, "you will retain up to $1,000,000 or 90% of your death benefit, whichever is higher" (Assuris). That's a backstop with defined limits, not a blanket guarantee, so read the terms for the product you're considering.

You can also check up on whoever is advising you. The Insurance Council of BC publishes a licensee directory covering all currently licensed insurance agents, agencies, adjusters and firms in the province, including licence status and class.

What this doesn't tell you

Honest limits on everything above:

• No prices appear here on purpose. What you'd pay depends on age, health, smoking status, coverage amount, term length and the insurer's own underwriting. Anyone quoting you a number without those details is guessing.
• The statistics get revised. Statistics Canada's 2023 release originally reported 351,477 live births for 2023. The 2024 release restates that year as 352,644. The 2024 figures are preliminary too.
• EI amounts change every year. The $729 and $437 weekly maximums apply to 2026. Your own benefit depends on your insurable earnings, so confirm it with Service Canada.
• Industry payout totals say nothing about your claim. The CLHIA figure covers all insurers and all policies. Individual claims turn on the contract wording, the application you signed, and how accurate your disclosures were.
• The legislation quoted here is technical. Sections 65 and 88 are summarized, not reproduced in full. For example, section 88 also lets a beneficiary who has reached 18 receive insurance money directly. How these rules apply to your designation is a legal question, so talk to a BC lawyer before relying on any of it.
• Tax treatment is its own subject. Death benefits, policies with cash value, and how coverage fits with an RRSP, TFSA or RESP strategy all deserve a conversation with a tax professional.
• Timing isn't a rule. For some families, waiting really is the right call, usually because cash flow is tight or a health issue is being sorted out. Just make that choice on purpose, not by default.

This article summarizes published rules and research for general information, is current as of the date shown above, and is not personalized financial, tax or legal advice.

Sources

• Statistics Canada. The Daily: Births, 2024. Released September 24, 2025. https://www150.statcan.gc.ca/n1/daily-quotidien/250924/dq250924c-eng.htm
• Statistics Canada. The Daily: Births and stillbirths, 2023. Released September 25, 2024. https://www150.statcan.gc.ca/n1/daily-quotidien/240925/dq240925c-eng.htm
• Government of Canada. EI maternity and parental benefits: How much you could receive. https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental/benefit-amount.html
• Canadian Life and Health Insurance Association. Claims in Canada rising: $143.3 billion paid to help keep Canadians healthy and financially secure. September 23, 2025. https://www.clhia.ca/en-CA/media-and-publications/news-releases/2025/Claims-in-Canada-rising-143-billion-paid-to-help-keep-Canadians-healthy-and-financially-secure
• Province of British Columbia. Insurance Act, RSBC 2012, c. 1, sections 65 and 88. BC Laws. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/12001_03
• Province of British Columbia. Probate Fee Act, SBC 1999, c. 4. BC Laws. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/99004_01
• Public Guardian and Trustee of British Columbia. Trust services for children and youth. https://www.trustee.bc.ca/children-youth/trust-services-children-youth
• Assuris. Term Life: How am I protected? https://assuris.ca/how-am-i-protected/assuris-protection/life-insurance/individual/term-life/
• Insurance Council of British Columbia. Insurance Licensee Directory. https://www.insurancecouncilofbc.com/licensee-directory/

If you're expecting and want a second set of eyes on this before the due date, Milo Sarmiento is an independent licensed broker in Burnaby who compares options from Canadian insurers instead of working for just one. He'll go through your group coverage, your beneficiary and trustee wording, and what a sensible amount might look like for your family, in English or Tagalog. Book a free, no-pressure call, and bring your benefits booklet.