Choosing the best life insurance for your family is no walk on the beach.
Our Life Covered℠ is here to help you find affordable coverage…and we promise you won’t get any sand in your shoes.
Unlike planning a family vacation, shopping for affordable family life insurance isn’t the sort of thing you’ll reminisce about much.
There won’t be a lot of Instagrammable moments (unless you want to snap a selfie with a stack of paperwork and throw a #adulting on it), you won’t get fancy wristbands in the mail, and you will most likely buy zero t-shirts to commemorate the experience. (On the plus side, you will spend zero money on t-shirts and zero time transporting said t-shirts to your local donation center when nobody actually wears them.)
However, taking your family on an unforgettable trip and protecting your family with a great insurance policy do have a couple of things in common: they are both acts of love, and they both have the ability to make life a lot better for the people you hold closest to your heart.
Since there are almost as many options for life insurance as there are travel destinations to choose from, it’s good to know a few basics before you get started.
Who Needs Coverage?
A lot of families make the understandable error of assuming that only the primary earner needs to be insured since the loss of their income would have the greatest impact. However, life insurance is about more than simply replacing income.
The right policy will provide coverage for final expenses (medical bills and/or funeral costs) AND allow your family to maintain their standard of living well into the future.
This means that all adults in the household, regardless of income or employment status, should ideally be insured.
If you’re bringing home the smaller of two incomes, that money still matters to your family. And if you’re a stay-at-home parent, you should also be covered, since all the incredibly important things that you take care of now — childcare, cleaning, cooking, transportation, schedule management, etc. — will still have to be taken care of if you’re not around. These services cost money, take time, or both…and either way, life insurance benefits will help make a really hard transition just a little bit easier for your family.
How Much Coverage?
The amount of coverage your family needs depends on a lot of things, but essentially it comes down to two questions.
- What are your family’s expenses now?
Make a list of all the things your family currently pays for, like a mortgage, utilities and home maintenance, vehicles, student loans, and credit card payments.
Don’t forget the things you don’t receive an invoice for but still need to purchase on a regular basis: groceries, clothing, entertainment, etc.
- What are your family’s anticipated expenses for the future?
Think about what your family will need in the coming years. First, of course, there’s the sad but necessary business of covering medical bills and funeral costs. But after that, there are extracurriculars and eventually college for your children. Trips to the orthodontist. Enough savings to cover emergencies. Vacations you’ll still want your family to take.
Once you have a list of the costs you need to cover, you can use an online life insurance calculator like this one to estimate how big your policy should be. The next step, of course, is to chat with an experienced insurance professional to confirm your needs and address any questions you may have.
What Kind of Coverage?
While there are many options within each category, the two principle types of life insurance are WHOLE LIFE and TERM LIFE.
Whole life policies cost more up front. However, whole life insurance is permanent, so you don’t have to worry about a lapse in coverage.
They also generally offer level premiums, which is nice if you are looking for consistent payments with relatively low premiums, assuming you purchase the policy when you’re young.
In addition, some whole life policies accumulate cash value over time, so you may be able to use some of the money, should you need it.
Term life policies are typically the most immediately affordable option. They cover you for a pre-defined amount of time (usually 5, 10, or 20 years), and because the chance of a payout is minimized with temporary coverage, the premiums tend to be lower.
Term life insurance carries no cash value, but your family will receive benefits if you pass away within the duration of your coverage.
We’re ready when you are. To find the absolute best affordable life insurance plan for YOUR family, head to ourlifecovered.com or give us a call at 888-828-9760.