3 Months Before the Due Date

Buy level term-life policies—one for you, one for your wife. "The insurance money can replace lost income or lost services," says Virginia Morris, Ph.D., coauthor of Standard & Poor's Guide to Money & Investing. You want a policy at least until the kids reach age 18. As for target payout, start at $250,000 per child. The cool calculator at lifehappens.org can help you determine your exact needs.