Family life insurance policies provide a death benefit that will allow your loved ones to cover funeral costs and replace lost income, as well as creating wealth to support future goals and aspirations of the entire family.
Families have several life insurance options to consider for themselves and their loved ones, including term and permanent policies such as whole and universal life. Some policies offer second-to-die and survivorship coverage.
Term Life Insurance
Life insurance may seem like something only breadwinners require, but its importance extends far beyond this role. A policy’s death benefit could help cover expenses such as childcare, meals and house cleaning which would otherwise become financially burdensome to their family members.
Term policies provide sufficient protection for most families, offering coverage for 20 or 30 years at an affordable cost compared to permanent policies such as whole or universal policies that provide lifelong coverage while building cash value over time.
Your insurance needs depend on your specific financial goals, lifestyle and family needs. Carefully examine current living costs as well as any potential future needs such as college tuition payments or debt repayment. Consider options such as terminal illness riders which provide access to part of your death benefit before death occurs.
Some insurers provide all-in-one life insurance bundles that allow you to combine multiple forms of coverage under one policy, making the process simpler; however, be wary that such bundles might provide less coverage than necessary or incur unnecessary premiums.
Whole Life Insurance
Whole life insurance offers permanent death benefits to cover debts, funeral costs and final expenses in your family’s name. In addition, it may provide savings benefits that build cash value over time (though this feature varies by policy). While its premium may be more costly than term policies, whole life is designed to protect you for life and can provide coverage throughout your lifespan.
Families with children can rely on whole life insurance to cover any potential consequences from a parent’s death. Child policies tend to have lower premiums than traditional whole life policies, though they could increase over time depending on your family needs and finances.
Most whole life policies offer flexible payment plans that enable policy holders to gain access to funds before death for various purposes such as paying down mortgage or debt obligations, childcare expenses and tuition costs.
Whole life policies available with no medical exam requirement can save time and money in the long run. Mutual of Omaha, American Family and Foresters Financial are leading providers of no medical exam whole life policies.
Life Insurance for Children
Life insurance policies for children are one of the best ways to secure their financial future, giving parents peace of mind about what lies ahead for their young ones’ finances. From protecting them in case of tragedy to providing for them as they grow into adulthood, such policies provide financial security and peace of mind for parents.
Children usually opt for whole life insurance policies that will last them throughout their lives and offer cash value accumulation. Furthermore, premiums on such plans tend to remain consistent over time so long as payments continue as scheduled until they turn 18. With life insurance policies protecting both physical and financial risks throughout life, most policies designed for children typically offer the ability to keep coverage until age 18.
Whole life insurance for kids does not typically require medical exams to apply, with applications typically being submitted quickly and simply with just their full name, date of birth and social security number required for processing. They may also need to answer some health-related questions as part of the application process.
State Farm, Prudential and New York Life offer whole life insurance policies designed specifically for kids at highly affordable rates and comprehensive coverage. These policies can serve as the cornerstone for their financial future if your child suffers from serious or chronic medical conditions that make obtaining life insurance difficult as an adult; plus they will receive returns of premium as dividends that generate interest and build their cash value!
Life Insurance for the Elderly
Life insurance can be one of the best tools available for financial security, from covering end-of-life expenses and debts to estate-planning tools for loved ones. But with so many plans on the market available, how do you select one that meets your specific needs?
Seniors can select from various policies with differing coverage options and price points, from term insurance policies (usually more cost effective) to whole life policies with tax-deferred cash value components and tax savings strategies. Term is often an affordable solution while whole life policies may provide greater financial protection after you pass away.
Final expense insurance policies can help your family cover funeral and end-of-life expenses more easily, often featuring low premiums and no medical exam requirements. As with all policies, however, the decision about coverage type and who owns it ultimately lies with you; oftentimes the person paying the premiums becomes the policy owner.
