Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Feb 9, 2022

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The Lowdown

  • A family life insurance plan can be a great tool to provide for your family if you pass unexpectedly
  • You can typically choose between a joint, term, or whole life insurance policy
  • You can shop for free insurance quotes online

Have you ever wondered, “What is family life insurance?”

Affordable family life insurance can help you keep your family financially secure if there were to be a death in the family. For example, if you had a term life insurance policy or a whole life insurance policy and passed away unexpectedly, the death benefit from that policy would be given to the beneficiaries listed on your policy.

Luckily, you don’t need to wait to start protecting your family. With today’s technology, you can find free family life insurance quotes online at any time of day as long as you have access to the internet.

Keep reading to learn more about family life insurance and how you can use it to provide a financial security blanket for your loved ones.

You can enter your ZIP code into this free tool to start comparing free family life insurance quotes.

What is a family life insurance policy?

So how would a family benefit from life insurance?

Family life insurance is typically purchased by those who would like to provide some kind of financial protection in case the worst should happen. Even individuals who are the primary homemakers can purchase life insurance, as the death benefit from such policies can be used to help with financial needs such as:

  • Childcare
  • Grocery delivery services
  • House cleaning services

Of course, if the number of working adults in the household changes due to a death, the death benefit can serve as a temporary stand-in for the lost income.

Now, family life insurance isn’t only for providing assistance for everyday tasks. The death benefit can also be used to cover the costs of a memorial or funeral service, mortgage payments, or be put towards a child’s college savings.

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Which insurance is best for families?

Every family is unique, so when you want to buy family life insurance, you’ll have to make a decision about which policy type is right for your family’s needs. The great news is that you won’t have to worry about making a choice that isn’t right for you. There are plenty of great options when it comes to choosing a family life insurance policy. However, you should know that family life insurance rates will vary from person to person.

As you shop for a family life insurance company, you’ll be able to choose from these policy types:

  • Term life insurance
  • Whole life insurance
  • Joint life insurance

While providing financial protection for your family is very important, it’s imperative that you don’t snatch the first policy you stumble upon. The main negative aspect of family life insurance is that you will have to pay more for a higher amount of coverage, and choosing a policy without putting the proper amount of thought into it can result in a policy that is more of a burden than a helpful financial tool.

Researching these policy types can help you find the best one that meets your coverage needs and your financial needs as well.

Let’s examine these policy types so you can determine which one can provide the most protection for your family.

Term Life Insurance

Families with young children who are also on a strict budget may want to consider a term life insurance policy. Since these policies only run for a set period of time, typically between 10-30 years, the chances of an insurance company having to pay out the death benefit are much lower than they would be with other policy types. This, in turn, results in much lower rates.

Now, bear in mind that when your policy ends, you will be left without any life insurance coverage unless you renew or extend it.

Whole Life Insurance

Whole life insurance, also known as permanent life insurance, will end when you pass away rather than after a set period of time, as long as you don’t miss any payments. This type of insurance tends to be more costly, but it comes with many more benefits than a term life insurance policy.

These types of policies accrue cash value, which you can utilize in any way you see fit. If you wanted to, you could use your cash value to take a loan out from yourself or even pay your premiums with your cash value. Such a policy could be an excellent choice for you if you would like to have access to a policy that could provide you benefits while you’re still alive.

Joint Life Insurance Policies

Not so commonly known, a joint life policy could be an excellent choice for a couple who have children in their care. Like a whole life policy, a joint life policy will not expire at a set point if all the payments have been made on time. A joint life insurance policy can also build up cash value; however, unlike a regular term life insurance policy, both partners are listed on the policy.

A joint life insurance policy is available as two different options:

  • First-to-die
  • Second-to-die

If you and your partner have purchased a first-to-die joint life insurance policy, the death benefit will be paid out after one of the named insured individuals passes away. On the other hand, if you and your partner were to both pass away, the death benefit would be paid out to your children, which could be greatly beneficial as policy benefits aren’t typically subject to income tax regulations.

Who can purchase a family life insurance policy?

Anyone, whether they have children or not, can purchase a life insurance policy to protect their loved ones. Even if you are not in a partnership, you can name your siblings, friends, or your siblings’ children as your beneficiaries. You should also know that if you have a child, you can take a policy out in their name. Most adults choose to purchase a whole life insurance policy for their child, as a whole life insurance policy can grow cash value.

Not only that, but if you purchase a policy for a child while they are still young and healthy, they will not need to worry about being denied coverage if they were to develop a health condition when they grow older. These policies typically are transferred into the control of the child when they reach age 21, and they won’t have to worry about an increase in their rates.

Now that you know why you may take a policy out on a family, you’ll need to know how to do so.

How to Take Out a Life Insurance Policy on a Family Member

Are you still asking the question, “Can I get life insurance for a family member?” Knowing how to get life insurance for a family member is very important if you want to protect your child financially. Typically, if you are the legal guardian of a child under 17, you can reach out to your life insurance representative and request to purchase a policy for your child. If the child in question is over 14 years old, that child will be required to sign off on the application.

When purchasing a policy for your child, different insurance companies will have different requirements. However, you should expect to share your child’s full name, birth date, gender, and social security number.

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What You Need to Know About Family Life Insurance Plans

Family life insurance could provide you with a vehicle that can help keep your family from financial strife if there were to be an untimely death in your family. Now, there are some drawbacks to purchasing life insurance. It will be an extra expense, and you’ll have to pay more if you want a higher amount of coverage or a policy that lasts for your entire lifetime.

This is why you should always read free insurance company reviews and request at least five quotes when shopping online so you can find the best insurance policy for you. If you need to find a family life insurance company, remember to take into account any debts that you or your family may have, any expenses that your family may face due to your unexpected death, and your budget.

Enter your ZIP code to get free family life insurance quotes today.

Frequently Asked Questions

When will a life insurance company not pay out a death benefit?

There are a few reasons why a company won’t pay out a death benefit. If you, for example, were to die fighting in a war or by suicide, that could make your policy null and void. Even death caused by an airplane accident may not be covered by some policies, so you should also review the constraints of your policy with a fine-toothed comb.

Which benefit supplement added to a life insurance policy insures an entire family?

A joint life insurance policy will allow you to insure more than one person; however, if you were to purchase a family income rider, your beneficiary would receive funds that matched your monthly income at the time of your death.

What is the best life insurance company?

There are many fine insurance companies on the market that provide excellent family life insurance plans. Which of these is the “best” insurance company will be different from person to person. While it doesn’t hurt to check on an insurance company’s A.M. Best rating and to read customer reviews, you should instead consider which insurance company is best for you.