Make sure your family is protected when it counts.
Once you have a partner and children in the picture, you know it’s time to get covered. But how does life insurance for a family work? Do you all need to buy your own policies? What kind of coverage is best for your crew?
Life insurance provides financial protection for your family, which is especially crucial when you have a spouse and children depending on your income. When you apply for life insurance, simply list your family members as your policy beneficiaries. That way, if you die while your life insurance policy is in effect, your insurance company will provide a cash payout called a death benefit to your family. This money comes with no strings attached and can help them pay for day-to-day expenses, replace your income, cover funeral costs, or take care of leftover debts.
Generally, there are two options when it comes to life insurance to help protect a family: term life insurance and permanent insurance. Term life offers coverage for a set period of time, usually from 10 to 30 years, and is the most affordable option. Term life insurance makes sense for many families, since it’s cost-effective and can provide coverage during the years your children are in the house or you’re paying off a mortgage.
Permanent coverage is a lifelong policy with an extra cash value component, which you can borrow from or use as collateral for a loan. You can choose from whole life, where your cash value will grow at a fixed rate, or universal life, where your cash value is based on a variable interest rate. Permanent life insurance policies are more expensive than term life, but can be a good fit if you have financial responsibilities that will last your entire life, like caring for a special-needs child.
Many families buy insurance to cover them until the major expenses that come with raising a family are done. For example, if you have a family of four, you’ll probably want coverage to last until your youngest child is financially independent. For your ideal coverage amount, consider all your financial obligations, including mortgage payments, day-to-day expenses, debts, and upcoming college costs.
It can be difficult to predict all your future expenses, which is why young families often choose a 30-year term life policy. This option typically provides maximum protection at a more affordable rate than permanent coverage.
Depending on what you want your plan to do, there are lots of ways to buy life insurance for a family.
Every family should have some kind of financial protection in place so they can carry on if something happens to one or both parents. That said, the right coverage is different for every family. When shopping for life insurance, consider your family’s size, budget, financial responsibilities, and future goals to find the insurance company and policy that works best for you.
Life insurance rates depend on a number of factors, like the type of policy you buy, how much coverage you need and how long you need it for, and your age and health. For example, the cost to buy a joint couple policy is likely to be different than buying two individual policies. A life insurance agent can help you figure out the best options for your unique needs and budget.
eFinancial is committed to helping individuals, couples, and families across the country find the right life insurance options to meet their unique needs and budget. You’ll have access to high-quality, affordable family life insurance products from over 20 leading providers. Our team of agents is ready to help you compare insurance quotes and guide you through the approval process, so you can get covered as quickly as possible.
Let eFinancial give you peace of mind about your loved ones’ financial future. We’re here to help.
Get your free, no-obligation online quote or call 800-957-9525 to talk with one of our agents.
