Family life insurance

Ready to buy life insurance for you and your family? Look into a family policy to get coverage to protect the ones you love.

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Life insurance makes sure that your family will be able to maintain the same quality of life in the event that you pass away or suffer a terminal illness. Many providers offer a family life insurance plan which can provide a financial safety net under the same policy for your spouse and children.

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Why we like:

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Why we like: Bestow

Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.

  • Application takes less than 10 minutes.
  • Available to people ages 25 to 54-years-old.
  • Currently offered in 40 states.
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Why should I consider a family life insurance policy?

Some people feel that only the breadwinner of the family should have coverage in place — this isn’t always the case. There are expenses that can arise that won’t be covered by a standalone life insurance policy include:

  • The price of keeping the home operational if a stay at home parent were to pass
  • The cost of treatment for children with a serious illness or injury

Coping with the loss of a loved one is hard enough to manage without having to worry about the financial loss that could come with a family member passing away. To financially protect themselves, families should make sure enough coverage is in place for each family member.

How would buying life insurance for my family be financially beneficial?

The last thing you want to have to do at a trying time is worry about finances, but unfortunately the rest of the world keeps on turning even if your life has been turned upside down by your grief. There are expensive funeral arrangements to take care of and debts to be paid. In addition, you’ll have to continue to manage your everyday finances — providing for your family, paying the mortgage, buying groceries and taking care of other everyday expenses.

This is where life insurance comes in. It’s designed to ensure that you and your family are able to maintain financial security when the unexpected happens, leaving you free to grieve and not have to worry about money in an especially difficult time.

How to get a family life insurance plan

Family coverage can be taken out as:

  • A joint life insurance policy to protect both the policy owner and their spouse.
    Under this coverage, there’s a joint-ownership where the spouse is a co-owner of the policy and the benefit is paid to both or one owner following the death of the other. Here’s how it can be beneficial:
    • Can be more affordable. Generally much more affordable than having two separate policies in place — some providers offer premium discounts.
    • Peace of mind. Both parties will be protected from financial loss if the other is to pass away or suffer a terminal illness.
    • Less fees. There will only be one set of fees for policy owners to worry about.
    • Convenient. Only one policy to maintain, this includes the initial application, premium payments, and future policy adjustments.
  • Individual policies for the child or spouse.
  • A policy rider that includes the child and/or spouse.

Consider these companies to protect your family

Name Product Issue Ages Coverage Range Medical Exam Required State Availability
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
All 50 states
Compare quotes from 16 life insurance companies side by side.
18 - 75 years old
$100,000 to $10,000,000
Yes
Get a term life insurance quote from this A+ rated company, founded in 1875. Customize your policy with additional life and disability riders.
18 - 64 years old
$100,000 to $3,000,000
No
All 50 states
Customized term life insurance policies up to $3 million, no medical exam required.
21 - 54 years old
$50,000 to $1,000,000
No
Not available in Alaska or New York
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
20 to 60 years old
$100,000 to $8,000,000
No
Not available in New York
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
25 - 60 years old
$100,000 to $5,000,000
No
Available in all states except for Montana
Offers term life insurance with accelerated underwriting. No-exam coverage up to $1,000,000 for those who qualify.
20 - 85 years old
$100,000 to $1,000,000
Depends on policy
All 50 states
Get a term or whole life insurance quote from Fidelity Life - starting as low as $15/day.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
All 50 states and D.C.
Get a quote within minutes from more than a dozen insurers.
20 - 80 years old
$25,000 to $10,000,000
No
All 50 states
Quickly get a quote for coverage with this marketplace, which compares term & whole life insurance policies from 45+ carriers.
eCoverage
eCoverage
25 - 83 years old
$25,000 to $1,000,000
Depends on policy
Get a term life quote from eCoverage - starting at as low as $15 per month.

Compare up to 4 providers

Buying life insurance for your parents

The death of a parent can come as an enormous shock and place a huge emotional strain on your life. Not only that, but the death of a parent can unfortunately result in you having to bear a significant financial burden. There may be unpaid debts to take care of or funeral expenses to cover. That’s a lot to take on considering you’ll still have to manage your own finances while you struggle to come to terms with your loss.

As a result, taking out life insurance for your parents can be a beneficial decision for your financial future. It ensures you can access funds when you need them most, which will offer peace of mind and let you focus on remembering your parent rather than worrying about how to manage your finances.

What should I consider when buying a policy for my parents?

It may be an awkward conversation to have with your parents, but it can save you a lot of stress in the long run. There are three types of life insurance available for elderly parents:

There are a number of factors you’ll need to take into account when securing life insurance for your parents. As a general rule with life insurance, the older the life insured is, the more expensive your premiums will be. This is because elderly people are at risk of suffering many more diseases and illnesses than their younger counterparts.

What life insurance features do my parents need?

You should look for a policy that gives you the option of renewing in the future. Depending on what type of policy you choose, you’ll also have to make a choice between graded and level premiums. Graded premiums start out cheaper and rise every year as you age, while level premiums stay constant every year.

Take the time to assess your finances and your parents’ finances to determine exactly how much coverage they’ll need. Check each policy closely to make sure you fully understand the benefits and exclusions offered.

Buying life insurance for your spouse and benefits of a joint policy

One of the major decisions many people have to make when buying life insurance is whether they should take out single or joint policy. A joint life insurance policy is owned by two people, usually married or couples.

However, it’s important to remember that taking out joint coverage does have a few advantages and disadvantages:

Advantages
Disadvantages
  • Joint policies are usually cheaper
    and attract discounted premiums
  • Can be difficult to manage
    if your relationship falls apart
  • Suitable if you and your spouse
    have similar insurance needs
  • Not suitable if your insurance needs
    differ or there’s a large age gap

It’s important to note that with a joint policy there will be only one benefit payment, while individual policies pay out twice.

Buying children’s insurance?

Many think that children’s insurance isn’t something that’s absolutely necessary. But, safeguarding your family’s well-being should also include having adequate protection for your children, as you never know if they’ll get sick or pass away unexpectedly.

Can I add a child to my existing policy?

Most insurers will allow applicants to add a child rider to their existing policy for an additional cost which is relatively a fraction of what the adult premium costs. The convenience of child coverage is that it’s often included as an additional benefit to critical illness or life policies.

Some policies already include coverage
Some insurance providers may provide children protection as an additional option at an extra cost or others may include it in the policy free of charge. If you’re looking to protect your family as a whole, make to include your children when comparing family life insurance quotes.

Children’s insurance will pay a benefit to the parents if the child is to suffer from (but not limited to):

  • Major head trauma
  • Meningitis
  • Encephalitis
  • Total and permanent loss of one or both limbs
  • Loss of sensory abilities; deafness, blindness
  • Paralysis
  • Accidental death

These conditions will vary between insurance providers, so it’s important to read the fine print before you sign the dotted lines.

Can I buy life insurance for non-family members?

Whether or not you can buy life insurance for a non-family member will first of all depend on your life insurance provider. Some select providers will let you take out coverage for someone who’s not a family member. In these cases, you’ll need to be able to show that you have an insurable interest in the person you want to get a policy for.

You’ll have to prove that you’ll suffer a personal and economic loss if the person you want to insure were to die. An example of this would be if you were looking to take out life insurance for a business partner or a key worker in your organization.

What kind of expenses can family life insurance cover?

It’s important for applicants to understand what kind of expenses can appear following the loss of a loved one that’s not the main income earner. Below are some common costs:

Immediate costs

Household expenses

  • Cost of child care
  • Groceries
  • Housekeeper for daily chores
  • Expenses for children — school, clothing, transportation

Other ways life insurance can benefit your family financially are:

  • Leave behind an inheritance for your wife, children and grandchildren
  • Help with funeral and burial expenses
  • Can accumulate cash value depending on the type of life insurance policy
  • Help with recovery after an accident or illness

The amount that these expenses will cost will be different for each family, so it’s important for applicants to assess their own situation to help them determine an appropriate benefit.

What events will generally be covered by a family life insurance plan?

Conditions covered will differ from policy to policy, but can include:

  • Death
  • Terminal illness
  • Cancer such as leukaemia, invasive cancer and skin cancer
  • Coronary attacks including heart attack, stroke and Cardiomyopathy
  • Coma
  • Blindness
  • Kidney failure
  • Major burns
  • Paralysis

What factors do I need to consider when it comes to family life insurance?

In addition to calculating the family’s current and future finances, there are other factors that you need to think about when determining your family’s life policy coverage:

  • Your age and your spouse/partner’s age.
  • Account for inflation when thinking about your income and future expected earnings.
  • Employment status of your spouse/partner.
  • Each partner’s contributions to the family (such as family savings and paying off debts).
  • The number of children you have and their age.
  • How long you’re considering to have a policy that can cover your family’s ongoing needs.
  • Total of available assets and investments.

It’s essential to calculate your family’s needs to figure out what sort of expenses that would need to be accounted for if you were no longer around. This will help you find the policy that makes the most sense for your family and give you an idea of the appropriate amount of coverage to apply for so you’re not being over insured and paying too much in premiums.

Talk with your family

The importance of discussing your policy with your family after you’ve taken it out stems from the need to go over exactly what the life insurance plan covers, how the claims procedure works and if it will need to be adjusted in the future.

  • Knowing what’s covered. Having an understanding of what’s covered will help your family avoid any false expectations.
  • Claims procedure. Knowing what to do in the event of a claim will mean the family can focus less energy on working out what to do and more time on grieving and recovering.
  • Whether your premium will go up each year. Some premiums will rise each year and you should budget accordingly for increasing expenses.

If you fail to talk to your partner or family about your life insurance plan, they could be left beyond confused if something were to happen to you that warranted a claim. By discussing how to handle a claim with your family, it’ll help remove any unneeded stress at a time when they already have enough going on.

Last minute tips

To help you find the right life insurance policy for your family, consider the following tips:

  • Find and compare multiple quotes. Don’t just go with the first or cheapest policy you can get. It’s important to get as many quotes as possible to determine which policy can give you the most comprehensive coverage, without sacrificing affordability.
  • Consider a jointly-owned policy. Besides having the advantage of costing less than individually owned policies, it provides an additional layer of protection should one or both parents pass away unexpectedly.
  • Include children in the policy. Consider adding children as a rider onto your family life policy to give you peace of mind when it comes to your kids.
  • When in doubt, speak to an insurance adviser. Doing all the research on different types of family life insurance on your own may be time-consuming and confusing; however, you can always ask for assistance from an insurance. They can assess your needs and personal circumstances and recommend life insurance policies that are tailored to match your needs.

Bottom line

Finding an affordable life insurance policy for the whole family may take a little bit of research, but that return on time invested will ensure that your family is financially protected when the unexpected happens.

With everyone under your roof covered, you won’t have to worry about who’ll take care of the mortgage, loan payments, credit card debt, cost of college or any other expenses that come up if you’re no longer around.

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