In addition to your own life insurance policy, you may want to explore policies for your family. To evaluate whether or not your family could benefit from having insurance policies for individual family members, it’s important to consider what would happen if something happened to a family member.
How much life insurance you need depends on such things as how many dependents you have, their ages, the length of time that you want to protect them, and the amount of money that you can afford to pay.
Would you, for example, have enough money to pay funeral costs and related expenses, including medical bills? If the family member is a wage earner and contributes to family income, or is a caregiver for your children or adult parents, you need to consider the monetary cost of losing them. No one could ever replace your loved one, but a good life insurance policy can help with some of the financial burdens associated with the loss.
What Kind of Policies Might Your Family Need?
If you want life insurance coverage for specific members of your family, you would need to take out individual insurance policies for each member. You might decide on whole life insurance policies, which cover up to the entire life of a covered individual, or term life insurance policies, which cover a specified length of time “term.”
Do You Need Life Insurance for Your Children?
Life insurance can be a powerful head start for your child or grandchild. Since the policy has a guaranteed cash value, it can also be borrowed against if a need arises.* In addition, if the unthinkable should happen, you can have peace of mind knowing that you are covered.
* Policy loan interest rate is 8%.