What is Family Life Insurance?

What is family life insurance? 

Family life insurance means a policy that covers all members of a family. It can help you cover several costs like the college debts of your children. Before taking this insurance policy, you need to identify who needs it in your family. You can establish this by determining the roles and responsibilities of your family members.

Those who are the breadwinners in a family need life insurance to protect their family’s financial future. Older people in a family may also need life insurance so as not to burden their family with burial expenses.

Best life insurance for couples

As a couple, you may decide to get life insurance for your family. The best way to do it is to buy a separate policy for each spouse. You can explore any of the two options:

Permanent life insurance: Under this policy, you have to pay premiums for the rest of your life. With this policy, you get lifelong coverage and cash value benefit.

Term life insurance: It is an ideal option for families. You get coverage for a limited period. You choose the coverage period after estimating certain factors like your family’s financial priorities.

In an ideal case, this family life insurance helps meet the following expenses if something unfortunate happens to the breadwinner.

  • Pay off the mortgage
  • Pay off children’s tuition fees
  • Cover funeral expenses

 

Life insurance policy for children

Generally, people don’t buy life insurance for their children. But there are policies available if one feels likely. These policies are a form of whole life insurance. Its cash value component builds over time and benefits the child.

Life insurance for parents or grandparents

Like children, older members of the family may not necessarily need insurance. They don’t have any dependents. But they can get insurance to arrange for costs such as funeral expenses.  However, it’s tough for older people to get typical life insurance due to their age and illness. But they can explore policies that don’t demand an undertaking of a medical exam.

Family Insurance Riders

There is an alternative to buying family life insurance. You can buy riders for the family members dependent on you. These riders ensure that your spouse or child gets the required coverage. Below are the most common types of family insurance riders:

Child riders

Those who fall in the age bracket of 15 days to 25 years can avail these riders. They can convert these riders into an individual life insurance policy. It gives time-bound coverage, and the family gets compensation if something unfortunate happens to the child during the set period.

Spouse term rider

It covers your spouse for a specific period. It expires on the termination of the base term policy or when the spouse reaches a certain age. There is an option to convert this rider into an individual policy before it expires. 

How to buy the best family life insurance?

Below are the tips that can help you buy the best life insurance for your family.

Determine the amount of insurance

The first thing you need to identify is the amount of insurance your family needs. You can determine this amount by formulating an accurate financial plan. However, you can also hire a financial consultant who can devise a better plan.

Get the best quote online with no human agent involved!

You need to exercise due diligence while purchasing family insurance like any other transaction. Get quotes from different companies and analyze which offer is the most rewarding. As well as, you also need to ensure that your insurance company has excellent financial strength. It displays their capacity to settle claims in the future.

 

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