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If you've already heard of life insurance, you've probably wondered … Who buys life insurance anyway? I need it? If you are a parent, you may want to consider life insurance and how it can benefit your family. This life insurance guide for parents will help you choose the right option for you.
The best life insurance for parents:
The best life insurance companies for parents
If you are buying life insurance, you want to make sure you are buying the best life insurance, right? The best thing is subjective, so that's why we've put together some of the best companies you can choose from based on your needs.
1. Best for Term Life Insurance: fabric
If you are looking for a life insurance company, Fabric can give you what you are looking for. It offers 10, 15 and 20 year term policies with coverage ranging from $ 100,000 to $ 5 million. You can also purchase an accidental death insurance policy from this provider.
Fabric is the best choice for parents because it is a company designed to make life insurance simple for your family. It also offers a free service that allows you to put together a will and appoint a guardian for your children. You will also benefit from Fabric Vault, which allows you to store and organize all your important financial information in a secure digital environment.
2. The best for life insurance: Haven
As a parent, you may be looking for a cheap life insurance option to give you coverage while keeping costs down. Haven offers affordable, commission-free coverage options for its life insurance customers. You can choose a duration between 10 and 30 years.
Haven coverage amounts range from $ 100,000 to $ 3 million. You will benefit from Haven's wide range of resources on its website and a quick digital application process. You may also benefit from additional benefits, such as discounts on family health services and a free service to create your legal will.
3. The best for whole life insurance: northwestern mortgage
If you prefer a full life insurance policy, we recommend that you find an insurance company with which you are comfortable working for a long time. Northwestern Mutual is an established company with excellent financial strength ratings, making it a good option for a full life insurance policy. You will benefit from Northwestern Mutual's commitment to helping you achieve your financial goals, starting with the matchmaking process to create a financial advisor.
After answering a few questions online, your new financial advisor will contact you to help you find the right type of life insurance to achieve your goals and budget. And with Northwestern Mutual your premiums will never increase.
4. The best for custom options: Sproutt
Sproutt is an independent broker who works with you to find the best life insurance for your family. When you visit the Sproutt website, you can enter a quick 8-step questionnaire to match the right coverage based on your lifestyle and needs. If you wish, you can complete the application online without speaking to a consultant.
Or, if you want assistance, you can talk to a consultant about your options before completing the question. The Sproutt customer service team can help you review life insurance FAQs and answer any other questions you may have.
5. Ideal for flexible coverage: ladder
Ladder understands that throughout your life, your financial situation is bound to change at least once or twice. That's why it offers the option to reduce coverage if the amount of coverage originally requested is no longer needed. If you expand your family and want to add more coverage to your policy, Ladder also simplifies the request for that change.
This online insurance company offers competitive rates and quick coverage. You can apply for Ladder life insurance in 5 minutes online and receive an immediate decision. You may be eligible to accept and begin coverage immediately.
6. Best for no medical exam: confer
One of the things to understand about life insurance policies is that you may need to undergo a medical examination before you can receive coverage. If you are looking for quick coverage without a medical exam, Bestow can probably give you what you need.
Bestow offers a quick online application process and immediate coverage if you have been approved. You can choose between a 2, 10 or 20 year policy with coverage ranging from $ 50,000 to $ 1 million. The low rates and 100% online procedure make it an affordable option for many families.
Life insurance premiums for parents
Life insurance has a premium. The premium is the amount of money needed to pay the insurance company for the policy. Basically, your premium cost is based on the amount of risk you pose. Any policy is at risk for the insurance company, be it life insurance for a young parent or life insurance for the elderly. When a company insures you, they take financial risk by giving you your policy.
Some factors that your insurance company will take into consideration to determine your risk are:
Your age The type of coverage The amount of coverage The length of the term
Here are some examples of how these factors can affect your reward. (prices indicated on 30/03/20).
AgeCoverage AmountTerm Company Quotes28 $ 500,00020-year Life of paradise $ 31.83 / month28 $ 1 million15 years Life of paradise $ 54.32 / month35 $ 500.00020-yearPrudential $ 28.44 / month35 $ 1 million15 yearsPrivative Year $ 39.81 / month44 $ 1 million15 / month
Whole life vs. life to term
One of the main questions to consider when it comes to life insurance is whether you should get full or term life insurance. Make sure to compare your options before deciding which life insurance is best for you.
Whole life insurance is a form of permanent life insurance – it remains valid for the rest of your life, provided you pay premiums. This type of life insurance also has a cash value component.
A portion of your premium payments will go towards the cash value deferred by taxes. Over time, your cash value will grow and you will be able to access and use this money. You can use your cash value to pay the policy, finance a loan for yourself, or help you cover retirement expenses.
It is important to note that the cash value of the policy will not be assigned to the beneficiary after death. For example, if you have a $ 500,000 full life insurance policy, the beneficiary will receive this amount only at the time of death. The amount paid to the beneficiary is known as the death allowance.
Term life insurance is a policy that only lasts for the number of years selected at the time the policy was purchased. The terms are generally offered for 10 to 30 years. At the end of the period, the life insurance policy expires. At that point, your insurance company may allow you to convert your life policy into a full life policy. However, in most cases, a new life insurance policy must be purchased after the life policy expires.
Term life insurance is a popular option because it tends to be less expensive than permanent life insurance products like cash value life insurance. Your life insurance policy works exactly like a whole life policy, except that it doesn't have a cash value.
If you die while the life insurance policy is active, the beneficiary will receive the death benefit. The indemnity in the event of death will be the amount of coverage selected at the time of purchase of the policy. For example, if you purchased a lifetime policy with a coverage amount of $ 750,000, your beneficiary will receive this amount at the time of death. If the policy expires before you expire and does not purchase a new one, the beneficiary will not receive a death benefit.
3 reasons to buy life insurance as a parent
Of course, carrying a life insurance policy adds another monthly bill to your budget. It can also be extremely useful for your family. Here are some reasons why parents should consider buying a life insurance:
To cover the funeral costs: if you die, the last thing your loved ones have to deal with is to shell out the money to cover the burial costs. Having a life insurance policy can ease this burden on your children.
Do not leave your children responsible for paying the debts: the costs add up. And when you're a parent, there are more costs than you can foresee. Take a minute to think about all your living expenses. The main things could include mortgage or rent payments, car payments and monthly utilities. This does not even take into account other common debts such as student debt and credit card debt. If you die, you don't want your children to be responsible for any of your outstanding debts. Paying a relatively small amount every month for life insurance can ease this burden on your children.
If you share expenses with your spouse: if you and your spouse work, you can imagine the financial stress that your family might have if one of you were to lose your job. If your spouse is a home parent, what would happen if your income was no longer there? Buying a life insurance policy will help ensure that your family can survive financially without you.
When buying a life insurance policy, we recommend that you consider a few things besides the life insurance company you choose. We advise you to think about how much coverage you need to financially support your spouse and children when you are no longer there. It is also important to balance the amount and type of hedges with what premium cost falls within your budget. Once you know what you need, get quotes from insurance companies to see what each of them can offer you.
Our tip: find the best solution with Policygenius
Finding the right company for your situation means considering all your options and getting the right advice. Policygenius allows you to get personalized quotes from the best insurers and request the best policy in one place. Their combination of online tools and support from impartial and licensed experts makes Policygenius the best site to help you get the right insurance.