Yes, do a term policy. Once children are born, add some more term insurance to cover through 20 years or so. When our children were born, we took out 15-year term policies, thinking that our children would be old enough to work, earn their own way through college, etc. as we/they got older if something ever happened to us. We'd be able to pay off the mortgage, also. We are pretty much at the end of our 15-year term policies and the rates are going to increase greatly. We will drop our term policies then. If I had thought it through more, I would have done a 20-year term instead just to make sure there was enough to get them through college in case something happens. As it stands now, there is enough money to cover all four children at a two-year community college/trade school. Our mortgage has been paid off for several years.
We, like you, also have life insurance through my husband's employer.
My grandfather never carried life insurance, and I never understood why when I was younger. But it was because he had so much in cash, his child was grown, his house was paid for, and there was enough money to pay the funeral expenses.