Family Life Insurance Quotes

Most life insurance companies in the United States sell family life insurance policies that protect entire families. Family life insurance is similar to individual insurance in that it provides a death benefit to the beneficiary upon the death of the insured. But family life insurance covers all eligible members of the family, not just the primary breadwinner.

Family life insurance quotes are very often quite affordable. The higher cost of insuring the adult or adults is often offset by the lower cost of insuring the children. Children, especially those who are young and healthy, are much less expensive to insure because there is less probability that the insurance company will have to pay a claim.

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Family Life Insurance Quotes and Eligible Family Members

Family life insurance covers the owner of the policy and his or her family. Family is usually defined as:

  • A spouse or domestic partner
  • Dependent unmarried children under the age of 22 years
  • Dependent children over the age of 22 years who cannot provide their own support

In some states, establishment of a formal domestic partnership is required in order to include a domestic partner on the policy. Some policies will cover unmarried dependents until the age of 25 years. For families with children who may not be able to live on their own or support themselves once they enter adulthood, a family or juvenile policy is especially important.

Dependent children are usually defined as:

  • Biological children
  • Legally adopted children
  • Stepchildren
  • Foster children (provided they live with the policy owner in a typical parent-child relationship

Some policies will allow grandchildren to be included on a grandparent's policy provided the grandparent is the legal guardian or the grandchildren are legally recognized as foster children.  Note that each insurance company and the state in which it sells the policy determine the eligibility and requirements for each individual on the policy.

Family life insurance coverage normally begins on the first day of the month following the month in which the policy was purchased. In other words, if the policy is purchased on July 15th, coverage will begin on August 1st.

Information Needed to Obtain Family Life Insurance Quotes

The information needed to obtain family life insurance quotes is usually the same as the information needed to quote an individual policy. The owner of the policy will have to provide personal information such as his or her date of birth, gender, height, weight, state of residence, overall health status and information about tobacco use.

He or she will then need to provide the same information about his or her spouse and then the age, gender and health status of each child.

Family Life Insurance Quotes for Term and Permanent Insurance

Family term life insurance is most often purchased to protect the income of one or both adults. The death benefit should be large enough to cover all outstanding debt – mortgage, student loans, credit cards, car loans, etc. – and also funeral and burial costs. Term life insurance, especially a family policy, can be quite affordable in terms of the premium paid as it relates to the death benefit received.

Some term family life insurance quotes will, however, limit the amount of coverage that can be purchased for each adult. And, in almost all cases, the amount of coverage for each dependent child will be capped between $5,000 and $10,000. The death benefit for dependent children is usually in an amount that covers funeral and burial costs, as the assumption is that children have neither the debt nor the financial responsibilities as do adults.

One type of term policy that often makes sense when looking at family life insurance quotes is term with return of premium. This type of policy will refund all or part of the premiums if those on the policy are alive at the end of the term. Unlike permanent insurance, term insurance is temporary. And while it makes sense to insure children to make sure that any final expenses will be covered by the death benefit and not have to be paid out-of-pocket, insurance companies rarely pay a claim because so few children die during the term. In fact, estimates place the rate of claims on term policies overall at between 2 and 5%.

Permanent family life insurance quotes can also be obtained. A permanent life insurance policy is in force for a person's entire life. Permanent insurance also has a cash-building feature that can provide a parent or grandparent with an additional way to save for a child or grandchild's college education. While a life insurance policy is not always the best way to save for college, it can at the very least protect the money that has been saved for college. And permanent policies can be borrowed against and used as collateral for loans.

Adding Children to Life Insurance Policies at an Early Age

One final benefit of finding a suitable policy by finding family life insurance quotes is "guaranteed insurability". Once insured, a person will have a less difficult time converting his or her policy, adding additional coverage or purchasing a new policy in the future. A child who is insured on a family policy will have a much easier time obtaining his or her own policy once he or she reaches the age at which coverage ends on the that policy. Because he or she was previously insured, the insurance company that issued the family policy will more than likely allow him or her to purchase a new policy, with a term policy or a permanent policy, without having to take a physical or provide any proof of health status.

For a young adult with a family of his or her own, this can provide an incredible cost savings. Purchasing a permanent policy at age 25 that is guaranteed to age 100 provides 75 years of insurance protection and potential investment growth. This policy can in turn protect his or her children and grandchildren.

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