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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Johnce/Getty Images February 04, 2022 Lizzie Nealon is an insurance contributor for Bankrate and enjoys making home, auto and life insurance digestible for readers so they can prepare for the future. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. A family life insurance policy can be designed to suit your needs to help ensure that you are financially prepared for an unexpected tragedy. In the event a member of the family passes away, beneficiaries of a life insurance policy can receive a financial death benefit. Life insurance for families includes a variety of policies, such as term life policies, which cover a certain period of time, or whole life policies, which never expire as long as premiums are paid. This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. The offers and clickable links that appear on this advertisement are from companies that compensate Homeinsurance.com LLC in different ways. The compensation received and other factors, such as your location, may impact what ads and links appear, and how, where, and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available to you as a consumer. We strive to keep our information accurate and up-to-date, but some information may not be current. Your actual offer terms from an advertiser may be different than the offer terms on this widget. All offers may be subject to additional terms and conditions of the advertiser. Compare life insurance providers quickly and easily
See which provider is right for you. The amount of coverage you need depends on many factors, including your age, income, mortgage and other debts and anticipated funeral expenses. Whole life insurance combines life insurance with an investment component. Coverage for life Tax-deferred savings benefit if premiums are paid 3 variations of permanent insurance: whole life, universal life and variable life include investment component Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time. Fixed premium over term No savings benefits Outliving policy or policy cancellation results in no money back Find matches Powered by HomeInsurance.com (NPN: 8781838) This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Bankrate Why Lemonade? It's a fresh twist on life insurance: easy, accessible and affordable. See more providers in Choose from insurers in Show More If you are looking for family life insurance, this article might help you understand what family life insurance is, what you can expect from obtaining a policy and why family insurance is or is not right for you based on your financial goals. As with homeowners or , life insurance coverage options can be chosen to fit each person’s circumstances and financial objectives. Explore how family life insurance plans work and how to find a policy that works for you. Why you should consider buying a family life insurance plan
Family life insurance may help to secure your family’s financial future if the unexpected occurs. The death benefit may be used to cover costly funeral expenses, but it may also be used to cover major outstanding debts or help replace income in the event one or more family members pass away. Some families opt to take out a term life insurance policy, which covers you and your loved ones for a period of time (usually 10 to 30 years) and may be priced at a lower premium. Term policies are designed to pay out a death benefit if you pass away during the coverage time frame. If you don’t pass away in the predetermined window of time, your policy will typically expire and your beneficiaries won’t receive a death benefit. However, it is possible with some life insurance companies to purchase a conversion rider, which allows you to convert a term policy to a permanent policy at the end of your term. Permanent life insurance, on the other hand, remains active for the duration of your life as long as premiums are paid. It’s typically much more expensive than term life insurance and comes with a cash value account that can gain interest and/or returns over the course of the policy. You may be able to borrow against this money, use it to pay your premiums or withdraw it from your account. Buying life insurance as a parent
When you’re a parent, a life insurance policy provides a level of financial security in case you or your spouse dies during a time when you still have kids or other dependents at home. It can help to replace income when a working parent passes away unexpectedly. And, for a stay-at-home parent, the death benefit can help cover the cost of childcare, cooking and cleaning costs if the parent who normally handles these tasks passes away. Think about the value of your income, debts and other relevant expenses when figuring out how much life insurance you may need for each member of your family. You may be in the process of deciding what policy type is right for you. The following policy types are popular options for parents. : Term life insurance is typically much cheaper than whole life insurance, as a payout is not necessarily guaranteed for the life of the policy. As a result, term policies may be a great option for families on a budget who only want life insurance coverage for a specific number of years, such as when their children are young and financial support is likely most critical. : Whole life insurance is typically much more expensive than term life, as it remains in effect for your entire lifetime and a payout is considered inevitable. It also comes with a cash value account that can gain interest and/or returns, depending on the type of permanent or whole life insurance policy you have. You may be able to borrow against or withdraw funds from this account over the course of your life. Depending on your goals, whole life insurance may be a great option for some families. : First-to-die joint life insurance policies pay out the death benefit when the first spouse dies. This type of policy may be cheaper than purchasing two separate policies. The other option is a second-to-die policy, which pays out the benefit after both spouses pass away. Leaving an inheritance to your children in this way may be beneficial from a tax standpoint, since death benefits are usually free from income tax when they are paid out to the beneficiaries. Joint life insurance policies
As a less commonly discussed , you may be wondering how joint life insurance policies work. Joint life insurance is typically considered a type of permanent life insurance, which is effective for as long as you pay the premiums. It covers multiple people and can be structured to build cash value and yield a tax-free death benefit. However, you may also be able to purchase joint life insurance policies that expire after 20 or 30 years, similar to term life insurance. Joint life insurance policies are not as common as individual insurance policies, but it may be right for couples who both expect to have some form of life insurance in place. In some cases, buying a joint policy can be cheaper than if two individuals have separate policies. The two different types of joint life insurance include first-to-die life insurance, where the benefit is paid when the first of the two spouses dies, and second-to-die life insurance, where the benefit is paid when both spouses die. If you’re not sure which type of joint life insurance policy would be right for you, it may be beneficial to review a or talk with a licensed life insurance agent. Pros Cons It can often be cheaper due to less underwriting labor. If one spouse has health issues, a joint policy may increase the other spouse’s life insurance costs. It can be helpful with estate planning by relieving some of the issues caused by probate (the process of validating and executing on a will). Joint life policyholders may need to wait a longer time before the death benefit can be paid out. A divorce could complicate the process of splitting the joint insurance. Buying life insurance policies for children
Most families may not instinctively consider getting . After all, children typically don’t contribute financially to the household and they are generally at a lower risk of death than older individuals. However, there are a few reasons life insurance for children could be helpful. The first reason would be to account for an untimely passing, in which case you could take out a small . Another reason is to lock in an affordable whole life premium at a young age before any pre-existing conditions appear. Developing health conditions could make it expensive for a child to get their own insurance later in life as a young or older adult. Instead, you could get a policy early and transfer the policy to your child when they turn of age, typically 21 years old. Can you buy life insurance for your parents
While there are strict rules about , you can purchase life insurance for your parents to help cover any expenses they may leave behind. Buying family life insurance for your parents can help them (and you) financially in a number of ways. For example, a death benefit can help the surviving parent if they largely rely on the other for retirement income or other benefits. An accelerated death benefit rider could allow them to tap into policy funds to pay for long-term care. Alternatively, if you’re named the beneficiary for a standard life insurance policy, you would receive the benefit when the policyholder passes away. This might help replace any income you’ve lost or expenses you’ve incurred if you act as a caregiver in their final years. Frequently asked questions
What is not covered by life insurance
Certain circumstances are not . Death caused by war and suicide are two causes that usually nullify someone’s ability to receive the death benefit. Some policies also don’t cover deaths from an airplane accident. These are things to consider when reading your policy’s fine print. What happens if you outlive your term life insurance policy
If you don’t pass away within the policy term, your term life insurance policy will expire and your beneficiaries won’t receive a death benefit. If you want the option to maintain your coverage beyond the number of years set out in your term policy, you may be able to purchase a conversion rider, which allows you to convert to permanent insurance before the policy ends. Some companies will allow you to convert to a permanent policy, but will decrease your death benefit in the process. Talk with your life insurance agent to verify the details of your individual policy. Who needs life insurance the most
It may be in your best financial interest to prioritize getting family life insurance when you have dependents who rely on you. This is true for both working and stay-at-home parents, as either your income or your role in the family may need to be replaced if you pass away. For older parents, life insurance can help cover costly medical expenses and resolve debt that your survivors may not be able to afford when you’re gone. If you have no dependents or don’t have any type of financial insecurity, a life insurance policy may not be worth the price. You may also decide based on your financial situation that your children do not need life insurance. Instead, you may choose to consider an educational savings account that comes with tax benefits since it provides another way to save money for your children’s future. Can I get life insurance without completing a medical exam
Many life insurance companies offer , but these may be more expensive than permanent or term life insurance policies that do require a medical exam. Why? A medical exam helps insurance companies determine your risk level and determine a premium based on that assessment. If you are in good health, an exam may help you secure a lower premium. Otherwise, a non-medical exam policy may cost you more. What is the best life insurance company
The depends on your individual needs and preferences, as well as your current health and other factors. First, you may want to narrow down which type of life insurance policy you want. From there, an independent insurance agent may be able to help you find the companies that offer your desired policy type. Once you know which companies offer the right policies for you, it can be helpful to compare third-party customer satisfaction scores from J.D. Power and financial strength scores from AM Best to see how companies stack up. SHARE: Lizzie Nealon is an insurance contributor for Bankrate and enjoys making home, auto and life insurance digestible for readers so they can prepare for the future. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Related Articles