Are you in need of an insurance policy that protects your family and loved ones against debts and other expenses? You’ve come across the best piece of writing today! Family life insurance is not exactly a type of insurance per se, but it is a combination of multiple policies that protects your loved ones against financial risks, losses, and damages.
Although not all insurance companies will offer a standalone product, you can still set up policies that would insure all your family members.
How Does Family Life Insurance Work?
Typically, family life insurance consists of different types of life insurance policies that cover every member of the family. While most companies do not offer family life insurance as an individual product, there are some who offer it in the form of a packaged deal that comprises different policies.
Although it is often expensive, it provides coverage for all family members against potential risks, loss, or damage. This type of insurance features a cash value component that accumulates over time. Here, the policyholder can borrow out of the cash value or withdraw it at any time.
Essentially, it covers a variety of insurance policies that are beneficial to the general wellbeing of the family. It is important for policyholders to understand the options provided by their insurance provider and select the one that best suits their needs.
Best Life Insurance Policy for Your Family
We have helped to curate three distinct types of life insurance policies that guarantee efficient protection for your family against risks, losses, or damages. They include the following:
- Term Life Insurance: This is the most affordable type of life insurance you would lay your hands on. It is an ideal option for individuals who seek financial protection at a reasonable and affordable cost. Term life insurance offers comprehensive coverage that is active throughout the length of the policy’s term. The way term life insurance works makes it a type of policy that is sought after in the industry today.
- Whole Life Insurance: This type of life insurance lasts for the period between the policyholder’s life and a certain age. It offers a death benefit while the policyholder is still alive, and it also includes a cash value that accumulates over time. However, it is important to note that whole life insurance is more expensive than term life. Regardless, it is an excellent option if you seek financial protection, which enables you to save money you can easily access while you’re still alive.
- Universal Life Insurance: This is also one of the best permanent life insurance policies you can get for your family. Universal life insurance features a saving component that has a strong potential for gains, but its risk is greater than that of whole life insurance. One of the outstanding features of this type of insurance is flexibility in terms of premiums and coverage options. You should get universal life insurance if you want permanent financial protection that is affordable and more flexible than whole life insurance.
Where to Get Family Life Insurance
There are several insurance companies that offer combination insurance policies for families who seek protection against certain risks and expenses. However, amongst all, we have helped to curate the top 5 best life insurance companies that families should opt for, which include;
- Ethos
- TruStage
- Bestow
- Fidelity
- State Farm
These life insurance companies are our top picks for families. If you seek whole-life coverage, TruStage should be an ideal option for you. For online term policies, we recommend Bestow. We picked Fidelity for families who seek coverage for accidental deaths and other unforeseen events. State Farm is a life insurance company that offers satisfactory customer service.
The payout you get from your life insurance policy can help cover future expenses, such as;
- Medical bills.
- Living expenses.
- Mortgage repayments.
- Funeral costs.
- Outstanding debts.
FAQs
How much does a family life insurance policy cost?
There are several factors that determine the cost of obtaining a family life insurance policy. Some of the prominent factors include the type of policies you intend to get, your needs, and your preferences. However, the average rate for a $500,000, 20-year term life insurance policy for a 30-year-old is $24.82 per month.
So, you can do the calculations by multiplying the number of family members you’re adding to the policy, and then you arrive at an estimate. This would enable you to know how much it’s going to cost you when obtaining a family life insurance policy.
For those who intend to opt for permanent life insurance, be prepared to face the cost attached, because the premiums for permanent life insurance are usually on the high side.
Should I purchase life insurance for each member of my family?
Well, the answer to this question is dependent on the type of goal you have in mind. However, in our opinion, it is not an ideal option to purchase life insurance for every member of your family. It is economically wise to purchase life insurance for the breadwinner of the family or someone whose income goes a long way in the family.
