What’s the Best Life Insurance for Your Family Members?

Most people would agree that life insurance can provide a huge benefit to your family. It helps you prepare for the uncertainties of life and provides you with peace of mind knowing that your family will have financial help if something were to happen to you.

If you’re the breadwinner of the household, you want to be sure you have enough life insurance coverage to help your family pay the bills when you’re gone. Even if you’re not the primary breadwinner, life insurance can be a godsend for your family.

Some ask if those who don’t earn an income need life insurance. There are a number of reasons why it makes sense: if the family member passed, it may be a financial hardship to pay for their funeral costs, life insurance could help cover those costs. Or if a non-working spouse is the childcare provider and they pass away, money would be needed for daycare expenses.

Now that we know why life insurance is important, let’s learn more about 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 everyone in your family under a single plan. The simplicity and convenience may be attractive to you. But a one-size-fits-all plan can leave you with too little coverage or paying too much for coverage you don’t need.

We recommend building a customized 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 appropriate type and amount of life insurance coverage for your whole family.

1. Secure 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 debt, 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, typically between 10 to 30 years, but because it doesn’t last for your whole life, it’s costs less. It’s a good option for someone who wants the most protection until the kids are grown or until the mortgage is paid off.

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 builds cash value that you can borrow against in case of an unexpected need. Or in the future you could cash in your policy and receive the accumulated cash value.

2. Secure coverage for your children.

Some folks have asked “Can you insure a child’s life?”. The answer is yes you can. And there are a number of reasons why you would get a whole life insurance policy like the Grow-Up® Plan for your kids. It will:

  • Provide coverage your children can keep as adults, with the guaranteed option to buy more coverage regardless of future health or occupation
  • Build cash value that can be borrowed from if needed* or the cash value can be paid out if the policy is surrendered in the future
  • Lock in a childhood rate that never goes up
  • Provide financial protection for the unexpected

Some insurance providers offer the option to add a child rider to an adult term life policy. However, the coverage discontinues at the end of the adult life term policy. Your child can keep the Gerber Life Grow-Up® Plan for their entire life.

3. Help ensure that your other loved ones are covered.

Have you ever discussed life insurance with your parents or grandparents? It may seem like a tough topic to discuss, but life is unpredictable. Even if you don’t depend on your parents or grandparents for financial assistance, their passing can leave a financial burden on you. You want your family to be prepared for the unexpected.

If you have family members between 50 and 80 years old, they may want to consider a Guaranteed Life Insurance policy. Applying is quick and easy with no medical exam, and acceptance is guaranteed regardless of health history. They can secure up to $25,000 of coverage that can help ease the financial burden on your family for medical bills, burial costs or unpaid debt. Your parents or grandparents would have to apply for the policies themselves and be the policy owners, but you can help them with the application.

How do I know what’s right for me?

Give us a call! We’ll look at factors like age and your family’s needs and help you decide what type of policy and coverage amount is best for everyone in your family. The simplicity of having just one policy to manage for your whole family may seem appealing, but customized plans can give each member of your family the level of protection that’s appropriate for their needs.