Congratulations.

I haven't read all posts above. However I recommend a large but decreasing term life policy on yourself, same thing but smaller on your wife. List each other as beneficiaries.  Make sure you have wills.

Decreasing term makes sense because your need for life insurance will decrease as your child gets older. Young families need the maximum insurance coverage they can get now for the lowest monthly cost.

If you want to save money, save money. If you want to buy life insurance, buy decreasing term life insurance. A decreasing term policy will give both you and your wife much more coverage per month dollar cost than any other type policy and insurance is what you need right now.  Shop around for decreasing term quotes but from a well rated company.

Life insurance is not a savings account. If you want to start a savings account for your child, put X dollars/mo in a money market savings account at your local bank or credit union.

Jim