Life Insurance for Families [2023]
Quick Facts
Married individuals can purchase a joint life insurance policy or separate policies
Children rarely need a life insurance policy
Term life policies are often the cheapest option for family life insurance plans
If you’re shopping for life insurance for families, you may be curious about how to filter through the countless family life insurance plans. The best way to approach family life insurance policies is to determine what you need before shopping for coverage.
The nature of your family, your needs, and those of your dependents will significantly impact the type of life insurance policy you buy. For example, if you want life insurance for the whole family, you may purchase multiple policies with riders for your children to ensure everyone is cared for.
The most affordable option for family life insurance is a term life policy. You may want to purchase an additional rider for each of your children. Still, term life will be cheaper than a family whole life insurance policy. You can find whole or term life insurance quotes online.
What is family life insurance?
Family life insurance applies to anyone who is married or has children. The most affordable and common option for family life insurance is a term life policy. This option works especially well for married individuals who have one or more young children.
Term Life Insurance for Families
A term life insurance policy offers coverage for a specific duration. Different types of term life insurance come with different term lengths, ranging from five to 40 years. Policyholders can choose the length of the term before they purchase their policy.
Some companies also offer the option of rolling a term life policy into a whole life policy, but this depends on the company you choose for life insurance.
One reason a term life insurance policy is extremely helpful for families with young children is that it allows parents to choose a specific amount of time that matches the family’s priorities — financial and otherwise. If you’re 40, for example, you may choose a 25-year term policy that covers the years you will work before retirement.
Whole Life Insurance for Families
Whole life is a type of permanent life insurance policy that lasts from the date you purchase the policy until you pass away, as long as you continue to pay your premiums on time.
Whole life insurance typically costs more than a term life policy because it lasts your entire life. Whole life is also known as cash value life insurance that can be helpful for bills and expenses you may incur as you age. In addition, you can borrow from the policy’s cash value to handle unexpected expenses.
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What does family life insurance do?
Some of the main reasons families purchase life insurance policies include:
Paying off a mortgage or other major form of debt
Paying for funeral expenses
Paying for school expenses and college tuition
Creating a type of inheritance for children
As you consider life insurance, a term life policy may work best for you if you’re looking for financial protection for your spouse and children if you pass away.
The best life insurance for your family may include a whole life policy since these policies carry a cash value component, but that’s something you need to determine before you shop online for coverage.
Who needs family life insurance?
If you are married and have children, a family life insurance policy is a good way to protect your spouse and children if you pass away unexpectedly. In addition, a life insurance policy ensures that your spouse and children will not be stuck with a financial burden they cannot handle.
As you shop for life insurance, it’s important to realize there is more than the financial loss associated with the lack of income. Families also need to consider the surviving spouse and the burden and responsibility of raising children.
In the past, many believed the only people who needed life insurance were those who worked outside the home. However, it’s important to consider life insurance for anyone who is a primary caregiver, as that person’s tasks will likely need to be outsourced to someone else in their absence.
How much does family life insurance cost?
Your family life insurance quotes will vary for several reasons. First, the type of insurance you’re shopping for will impact your monthly premiums. For example, family life insurance rates for a term life policy will be much cheaper than those for whole life insurance.
How much life insurance costs varies based on different factors. That’s why it’s important to shop online and compare life insurance quotes for families so you don’t end up paying too much for coverage. Comparing quotes will also help you find your area’s best family life insurance company.
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How do I buy life insurance for families?
As you shop for a family life insurance policy, there are a few things you can do to ensure you end up with the life insurance policy that best fits your needs and those of your beneficiaries.
Consider Your Family’s Financial Plan
Understanding your family’s financial plan will help you find the right insurance policy and death benefit for your family. In addition, a financial planner may help you with your financial goals.
Overestimate Your Needs
It’s easy to assume you don’t need much life insurance, but you may be surprised at how much life insurance you really need. You can calculate the amount of coverage by considering the family’s financial obligations if you were to pass away.
Don’t forget to factor in things like loss of income, significant debts, and the cost of childcare, private school, and college tuition. Doing this will give you a good idea of how much money your family may need if you’re gone.
Compare Quotes from Multiple Companies
Once you know the type of life insurance you’re searching for, compare quotes to get the lowest life insurance rates. Compare quotes from several companies to determine which offers the coverage you’re looking for at a price you can afford.
Life Insurance for Families: The Bottom Line
If you’re married and have children, you may need a life insurance policy to protect your loved ones from any financial obligations they may have if you pass away.
Determine whether you want a term or permanent life insurance policy, and then decide on the amount of coverage your loved ones will need. Once you know what you’re looking for, you can compare life insurance quotes from several companies to determine which offers the most affordable life insurance for families.
Frequently Asked Questions
How much does a family of four pay for life insurance?
The average cost of a 20-year term life policy for $500,000 is around $147 each month.
Can I get whole life insurance for my entire family?
Certain companies offer whole life insurance policies for every member of your family. It’s important to consider whether you and your family members need this type of coverage.
How much life insurance does a family need?
The standard rule of thumb is to purchase six to ten times the amount of your annual salary. You may want to increase this amount if you have children.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states.
After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in…
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Written by
Rachael Brennan
Licensed Insurance Agent
Benjamin Carr worked as a licensed insurance agent at State Farm and Tennant Special Risk. He sold various lines of coverage and informed his clients about their life, health, property/casualty insurance needs.
Assessing risks and helping people find the best coverage to suit their needs is a passion of his. He appreciates that insurance was designed to protect people, particularly during times…
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Reviewed by
Benjamin Carr
Former State Farm Insurance Agent
