Whether you are a new parent, just had another child, or you are a grown child looking for a policy for your parents then it is important to understand why you need to own life insurance policies for parents. Most people do not think about owning life insurance until they have the responsibility of caring for a child.
Having a child puts your life into perspective and purchasing life insurance is a grown-up decision that helps you protect your responsibility to your family. Life insurance policies for parents come in a variety of different types, each with their advantages and disadvantages, but the crucial thing is you have coverage.
In my opinion, life insurance policies for parents is the most important demographic for those who need life insurance coverage. As I am sure you are aware by now, children are a huge financial responsibility even with the income of both the mother and father. If you were to cut the income in half, which is what would happen if one passed away, your family (and future) would be hit with a big income gap.
Since we have now decided you and your family need life insurance on the parents, the next step is determining what will be the best policy. A few of the factors in which you must consider when searching for a policy is the budget you are comfortable allocating to life insurance, the coverage amount you need, and the duration you will need to keep the policy. How you answer these factors will help in making a determination in which type of policy will suit you best.
A big part of which policy will be best for you is based upon the budget you are willing to allocate for your life insurance premiums. This is important to talk with your family about since it is a long term commitment, and must be paid on a consistent basis. The last thing you want to do is lapse your life insurance because of an inability to afford the premiums. This only benefits the life insurance company. You want to make sure it is a premium you are comfortable with, but still provides appropriate amounts of coverage.
A good method is starting with affordable term life insurance coverage to get used to paying the premiums before you jump into a long term permanent life insurance solution. Term life insurance is generally much cheaper than permanent life insurance.
Determining how much life insurance you need will factor into the type of life insurance in which will work best for you. A good way to determine your need is to undergo a life insurance needs analysis. Some of the most common factors which go into determining this face amount include mortgage, debt, education, burial, and income replacement. A higher need will usually result in term life insurance, or a combination of both term and permanent life insurance.
Life insurance duration refers to the amount of time you need coverage for. If you only need coverage for a certain amount of time for something such as a mortgage or a child than term is going to be your best option. If you need coverage for something like burial later in life than a permanent solution may be best such as whole life or guaranteed universal life insurance. A good baseline for life insurance policies for parents would be a 20-30 year term policy which would be in force while your children are growing up and your financial obligations are highest.
Planning to purchase a life insurance policy can only take you so far. Without taking action and purchasing a policy than you are taking on unnecessary risk for you and the future of your family. Life insurance policies for parents are extremely affordable, and the application process is simple. Now since you understand the importance of a policy, and the types of policies, now it’s time to get quotes and apply for a policy.
Our simple to use online life insurance quote form can help you explore the companies who are offering competitive coverage. Once you find a policy which meets all your objectives you can start the application process online. From there, one of our experienced agents will reach out to you in order to finalize your application.