Key takeaways
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- Whether you are planning for a family or busy raising one, life insurance for your family can provide critical protections for the people you love.
- Life insurance can help pay off a mortgage, provide living expenses, support your spouse, pay for college for children, or help you leave an inheritance.
- There are several types of life insurance that may work for everyday families in a variety of situations.
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What is life insurance for families?
Life insurance for families refers to the different life insurance policies covering various family members. When individual policies and riders are combined, it creates a comprehensive life insurance plan to protect everyone if the unexpected happens.
You’re at the stage of your life when you’re growing your family. How can you protect everyone in the event that something happens to you?
Life insurance can help cover so many eventualities from replacing years of income cut short by an untimely death to providing for extra expenses as your children grow up.
Reasons families should have life insurance
Being a part of a family means joy and companionship. It also means added responsibility and people to care for. If something were to happen to you, you want to be sure your family will live comfortably, thrive, and enjoy life as they do now well into the future.
A life insurance policy, and any appropriate riders, can help you protect you family in the event of your death. These protections can also give you access to extra funds when you need them, such as if you received a terminal illness diagnosis.
A life insurance policy can:
Pay off the family home
Your family home is a major investment. At least a third of your household income potentially goes towards mortgage payments and upkeep. If your loved ones suddenly lost you and your contribution, would they be able to afford to stay in home you’ve created together? A life insurance policy death benefit could help pay off the mortgage and ensure your family feels safe and secure.
Provide for living expenses
The loss of a loved one is an emotionally devastating event. It can, unfortunately, also derail a family’s financial stability. Worrying about current or future bills is the last thing you want your loved ones to have to do. By ensuring that you’ve supplied the equivalent of years of your income as a death benefit, you can continue to support them and provide financial security even after you are gone.
Leave an inheritance
Chances are, you had planned to leave a legacy behind for your children. A life insurance policy means that your heirs could have the support you always wanted for them – whether it is going to college, buying their first car, or helping with a down payment on a home of their own.
Support a surviving spouse
The shock of losing a loved one is often all too quickly followed by the shock of realizing that family finances must now be handled by the survivor. Having a cushion can help ease that transition, and provide a way forward. A former stay-at-home spouse can feel confident they can pay the bills while figuring out the next move. It may also give them a safety net if they want to go back to work by keeping finances in order.
Replace the work and efforts of a stay-at-home parent
A life insurance policy is often seen as a way to replace lost income. It can also provide valuable support in case a non-working parent passes. All the responsibilities managed by a stay-at-home parent, from caring for children and helping with homework to shuttling the kids to school and activities, may need to be outsourced and paid for. Or, if a grieving widow or widower decides to take time off work to be with children, a life insurance policy on a non-employed parent can help support everyone.
Find a policy that works for you
There are a range of affordable Fidelity Life products to choose from based on your situation and financial responsibilities.
Best types of life insurance for families
Term life insurance for families
A term life insurance policy for each parent maybe the most viable option. Term life insurance is the most popular life insurance product, and for good reason. It can adequately replace lost income or the work of a non-employed parents during the period of time your children are at home or during your peak earning years. A term policy can support your loved one’s dreams, from staying in the family home or heading off to college.
Explore term life options from Fidelity Life.
Whole life insurance for families
If it makes sense financially, a more expensive whole life insurance policy can provide guaranteed lifelong protection without a term limit. A whole life policy has level premiums, and also has the benefit of acting as a way to save money. This can be handy in the years to come. Those funds may help pay for a wedding, send a child to graduate school, or leave an inheritance for your adult children.
If you are age 50 or above, explore the permanent life options offered by Fidelity Life.
Life insurance riders for families
Riders can add extra value to your life insurance policy. There are several riders that can help you feel confident you’ve put in extra protections for your family.
A child rider can help cover the costs of funeral expenses. It can also allow you to take time off from work to grieve and care for the rest of your family.
Explore Fidelity Life’s Child Rider, available with our RAPIDecision® Life plans.
In general, a family accidental death benefit provides an extra sum of cash in case your death or your spouse’s death is caused by an accident. It can also extend special protections for your children.
Explore Fidelity Life’s Family Accidental Death Benefit rider, available with our standalone Accidental Death Benefit policy.
Protect family and your legacy with a life insurance policy designed to protect your family. Reach out to discuss your options.
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Life insurance for families from Fidelity Life
Explore policies that can work for many kinds of families.
