If you are the breadwinner, you want to make sure you have enough life insurance coverage to help your family pay the bills when you leave. Even if you are not the main breadwinner, life insurance can be a godsend for your family.
Some ask if those who do not earn an income need life insurance. There are several reasons why it makes sense: If the family member passed away, it may be a financial hardship to pay your funeral costs, life insurance could help cover those costs. Or if a non-working spouse is the child care provider and they die, it would take money for daycare expenses.
Now that we know why life insurance is important, let's learn more about the different insurance options so you can determine what makes sense for your family's situation.
What are family insurance plans?
Some insurance companies offer all-in-one family insurance policies that cover all of your family members in one plan. Simplicity and convenience can be attractive to you. But a one-size-fits-all plan can leave you with too little coverage or pay too much for coverage you don't need.
We recommend creating a personalized plan for each member of your family with individual Gerber Life policies.
Follow this 3-step plan to help give your family additional financial security by getting the right type and amount of life insurance coverage for your entire family.
1. Insure life insurance coverage for you and your spouse.
As mentioned, if something happens to you, your insurance policy can help replace lost income or help your family cover debts, final expenses, and childcare expenses.
What type of policy should adults consider for life insurance coverage?
There are two main types of insurance, term life insurance and whole life insurance. With a term life insurance policy, you generally get the most amount of coverage for the lowest cost. It provides protection for a set period of time, usually 10 to 30 years, but because it doesn't last a lifetime, it costs less. It is a good option for someone who wants the most protection until the children grow up or until the mortgage is paid.
A whole life insurance policy provides protection for your entire life. It does not expire as long as you pay the monthly premiums. It also generates a cash value that you can borrow in case of an unexpected need. Or in the future, you could collect your policy and receive the accumulated value in cash.
2. Secure coverage for your children
Some people have asked "Can you ensure the life of a child?". The answer is yes, you can do it. And there are a number of reasons why you would get a full life insurance policy like the Grow-Up® Plan for your children. :
- Provide coverage that your children can maintain as adults, with the guaranteed option to purchase more coverage regardless of their health or future occupation
- Create a cash value that can be borrowed if necessary * or cash value can be paid if the policy is delivered in the future
- Ensure a childhood rate that never goes up
- Provide financial protection for the unexpected.
Some insurance providers offer the option of adding a child to an adult term life policy. However, coverage is suspended at the end of the adult life term policy. Your child can maintain the Gerber Life Grow-Up® Plan throughout her life.
3. Help make sure your other loved ones are covered.
Have you ever discussed life insurance with your parents or grandparents? It may seem like a difficult topic to discuss, but life is unpredictable. Even if you don't depend on financial help from your parents or grandparents, your departure can leave you with a financial burden. You want your family to be ready for the unexpected.
If you have family members between 50 and 80 years old, they may want to consider a guaranteed life insurance policy. Shipping is quick and easy without a medical exam, and admission is guaranteed regardless of health history. They can secure coverage of up to $ 25,000 that can help ease your family's financial burden of medical bills, burial costs, or unpaid debts. Your parents or grandparents will need to request the policies themselves and be the policy makers, but you can help them with the request.
How do I know what is best for me?
Call us! We will analyze factors such as your family's age and needs and help you determine the type of policy and the best amount of coverage for all members of your family. The simplicity of having a single policy to manage for your entire family may seem appealing, but personalized plans can give each member of your family the level of protection appropriate to their needs.
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