You are reading this post because you have a family and considering life insurance to protect them financially in case of your (or spouse’s) death. And rightfully so. If you have anyone depending on you financially and affected by your debt you should protect them with family life insurance.
The day that you die, your contribution to family income stops, but your dependants will still have to pay the same bills. Life insurance should replace your income in the household budget for as long as your family needs it to.
Different families in different stages of life command different life insurance strategy
For example, a young family will need to consider amount of mortgage owing, childcare expenses, future college fund and forecast for other child-related expenses. Young family is also more likely to have higher debt and smaller savings. The amount of insurance required will be higher than for an elderly empty-nest couple with significant savings.
Family with some savings or secondary property may offset some costs related to death of one of income earners and therefore reduce the amount of life insurance needed.
There are few major types of family life insurance plans:
Term, Universal and Whole Life Insurance. You can read more about each in our other posts by clicking on the name of each product type. Which life insurance for family to choose will depend on your specific needs and wants. Use the free life insurance calculator on our website (link) to estimate the amount of coverage you need. Don’t feel bad if estimated premiums are over your budget. Buying less coverage is always better than buying none.
Contact our expert team to receive free consultation about the life insurance best suitable for your family and budget in mind.