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Best Family Life Insurance Companies of 2024 – See More Details

Best Family Life Insurance Companies – For families who face an uncertain financial future following the death of a parent, family life insurance can put a surviving spouse and children on solid financial ground. Term life insurance can be a great fit for families looking to replace the income or fund other expenses like college in the event a parent passes away.

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Our analysis of term life insurance policies found that Corebridge, Pacific Life, Protective, and Symetra offer the best family life insurance.

Best Family Life Insurance of 2024

Our top picks for family life insurance are:

  • Corebridge Financial – Great for Choices of Term Lengths
  • Pacific Life – Best Cost for $1 Million Term Life
  • Protective – Great for Long Level Term Lengths
  • Symetra – Best for Term Life Rates

What Is Family Life Insurance?

Buyers looking for family life insurance enjoy numerous options. Typically, term life insurance offers the best option for someone with a family, particularly a family with young children.

A term life insurance policy locks in a level rate for a certain period, such as 10, 15, 20, 25, or 30 years. Protective and Banner Life also offer 35- or 40-year term life policies. After this level premium period, you can typically renew the policy every year, but the renewal rates can be extremely high.

Term life is great for family life insurance because you can choose a level term period that most matches your family’s financial priorities. For example, term life is a good option for income replacement, meaning a way to provide your family with funds that replace your income if you die unexpectedly. If you’re 40 years old, you might buy a 20-year or 25-year term policy to cover your working years.

Other reasons to buy family life insurance include:

  • Paying off a big debt, such as a mortgage.
  • Covering funeral expenses.
  • Paying children’s college expenses.
  • Leaving an inheritance to your children.

Term life insurance is also an affordable alternative to other options such as whole life insurance. Term life insurance gives you the most bang for your buck when it comes to the coverage amount for your money. One reason is that it does not contain cash value, so all your premium goes toward paying for the life insurance, not to cash value or policy fees.

Who Needs to Get Family Life Insurance?

Family life insurance is essential if you have people who financially depend on you. Life insurance can provide a financial safety net for your loved ones after you’re gone.

It’s especially important to look into buying life insurance if you’re welcoming a child into the world.

When considering your life insurance options, you should look not only at the potential lost income of a parent but also at the cost of covering the responsibilities of raising children.

It’s also important to think about family life insurance for stay-at-home parents. Primary caregivers in a family take on a lot of household tasks that would still need to be done in their absence. A life insurance payout can provide money for these services, such as child care or house cleaning.

How Much Is Family Life Insurance?

Family life insurance through term life will be much more affordable than other types of policies, such as whole life insurance.

Here are examples of term life insurance costs for the companies that scored highest in our analysis of the best family life insurance. Rates are based on buyers who are in excellent health. Once you buy a term life policy, you lock in the rate for the level term period, such as 20 years.

Life Insurance Riders for Families

When you buy life insurance for yourself, you may be able to add coverage for your family:

  • Children’s term life insurance riders are common. Buying this rider will allow you to add a certain amount of life insurance for one or more children. If the children pass away (before the term age limit), you’ll receive a death benefit that you could use for funeral costs or any other expenses.
  • Spousal term life insurance riders are available from some insurers when you buy coverage for yourself. This rider will pay out a death benefit if your spouse passes away while your policy is active. If your spouse has health issues and would not be able to buy their life insurance, this rider could be a way to insure them. But if you pass away, their rider ends, too.

Tips for Buying Family Life Insurance

If you’re looking for family life insurance, keep these tips in mind.

  1. Have a Family Financial Plan

Having a clear financial plan will help you identify how much family life insurance you need and whether term life insurance is the best option.

A life insurance purchase works best as part of a broader financial plan. A financial advisor can help you put all the pieces of your financial puzzle together.

  1. Don’t Underestimate How Much Family Life Insurance You Need

Many people underestimate how much life insurance they need. A financial advisor or life insurance agent can help you pinpoint an amount. A life insurance calculator can also help. A good calculation method is this:

  • Add up the financial obligations you want to cover with family life insurance, such as income replacement, large debts, and/or college costs.
  • Subtract funds your family could use for these expenses if you were no longer around, such as savings or other existing life insurance.
  • The result is your estimated life insurance need.

It would not be uncommon to need $1 million in life insurance or more. It’s smart to buy the coverage amount you need rather than wait. As you get older—and potentially develop health issues—life insurance quotes will go up.

  1. Compare Life Insurance Quotes

Like other purchases, you can save money on family life insurance by shopping around. Life insurance quotes are free, and by comparing multiple quotes you’ll get a sense of what a good price is.

Life insurance quotes are very individualized. Rates are typically based on your age, gender, health, driving record, and other factors.

But don’t shop based on price alone. Check the financial strength of each life insurer you’re considering. Rating agencies such as AM Best and Standard & Poor’s produce financial strength ratings that reflect the ability of each insurer to pay claims many years down the road.

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