What is Family Life Insurance?
March 28, 2024 | Tom Peterson
Most individuals are familiar with the term and concept of life insurance, but what about family life insurance? How is family life insurance different from any other life insurance policy? We’ll fill you in on the unique features and benefits of family life insurance and how it can provide financial protection and peace of mind for your loved ones in times of need.
What is Family Life Insurance?
This type of insurance ensures that surviving family members are financially supported and can maintain their standard of living in the face of unexpected events. Family life insurance policies may include various coverage options such as death benefits, critical illness coverage, and additional riders for specific needs.
Types of Family Life Insurance
The types of family life insurance are the same as one would typically see with an individual policy. That would be Term life insurance and whole life insurance.
Term Life Insurance
Term life insurance provides coverage for a predetermined period or term and pays out a benefit if the insured passes away within that time frame. The insured pays fixed premiums for a set coverage amount throughout the term, typically spanning years or decades. You’ll need to secure new or additional coverage when the term ends. Term life insurance can be one of the least expensive options for obtaining life insurance benefits.
Whole Life Insurance
As its name indicates, whole life insurance can provide a life insurance benefit and covers the insured’s entire life as long as premiums are continually paid. Depending on the overall performance of the insurance company, policyholders may receive cash dividends, which can be utilized to reduce premiums, acquire extra coverage, or invest in term life insurance.
If you’re not sure where to start, learn the basics about the different life insurance plans and download our free life insurance e-book.
How to Know if I Need Family Life Insurance?
If you have a family that depends on you or a spouse for financial obligations, then having protection in place is important. Additionally, if one parent is the primary caregiver, it can be just as significant to have life insurance coverage in place as this responsibility can be just as valuable. Here are some everyday situations and family dynamics that would strongly indicate a need for family life insurance.
Parent(s) with minor children: In the event that a parent passes away from illness or accident, the loss of their income or caregiving skills could create financial hardship. Life insurance can ensure that a surviving parent and/or children have financial resources until they can support themselves.
Parent(s) with special-needs adult children: If you are responsible for an adult child(ren) who will require lifelong care, family life insurance can help ensure their ongoing needs will be met after their parents pass away.
Find out more about: Who Should Buy Life Insurance?
Do you have additional questions about family life insurance and need help determining what type of coverage is ideal for you? At Twin City Underwriters, we know that individualized attention to a client’s personal situation and needs are especially important, which is why we take the time to understand you and your financial goals. Contact us to schedule an appointment with one of our experienced insurance agents.
Are you ready to have a meaningful discussion about your financial needs? Call or email TCU today to set up a free, no-obligation appointment with one of our dedicated agents.
Choosing a life insurance plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our life insurance brokers to get your insurance questions answered!
