A popular request many people have when looking for life insurance in 2016 is for a family plan life insurance policy. A family plan policy would cover everyone in the family; husband, wife and children. While there are many that want a family plan to have everyone insured all on the same policy, the fact is that it’s better to protect the family with separate policies, which can be done with the same company or with different companies. While there are companies that do offer a family plan policy such as Primerica, the rates are typically much less expensive for the husband and wife to have to have separate policies and to add the children on as a child rider. Not only is it less expensive but it provides much more flexibility if the one spouse ever wants to cancel their policy.
Another benefit of having individual policies is that when the term expires and if the health of one of the spouses changes the other spouse has to keep a significantly much more expensive policy costing extra thousands or more dollars.
Family Plan Life Insurance Prices
Take a look some sample rates for the entire family to be insured with the same company but with the husband and wife having their own individual policies.
$250,000 20 year term 40 year old male with $10,000 child rider to cover all children until age of 25 is $24.36 month with Protective Life.
$250,000 20 year 40 year old woman $16.93 Protective Life.
The 3 children are already added into the husbands cost above. Children under the age of 18 can be added on as a rider onto one of the parent’s policy or they can get a juvenile whole life insurance policy from Gerber or Globe Life insurance which will lock in the rate for the rest of their lives.
In this example, the whole family can be covered for $41.29 month. Both husband and wife have $250,000 worth of life insurance fixed for 20 years and the kids have $10,000 of coverage fixed until they are 25 years age.
This rate is typically less expensive than if the spouse was a rider on the other spouse’s policy. In addition another benefit of having a separate polices is that if one spouse wants to cancel or change the policy then it won’t affect the other spouse’s policy. Also, as mentioned above, when it comes time to renew the policy and if the health of one of the spouses has changed, having separate policies will ensure the other spouse won’t have to continue paying high premiums just to keep them on the policy and the other spouse can convert their policy to permanent insurance.
Family Plan Life Insurance 2016
The best way to have life insurance on all members of the family is for the parents to have their own separate policies with the same insurance company or even separate companies if the cost savings is great, and to have the children as riders or for them to have their own whole life policy with a company like Gerber or Globe Life. Even though the policies themselves are individual they are often with the same company and the payments are taken out of the same account at the same time. However, by keeping the polices separate, not only will it be cheaper but it will provide the flexibility down the road if one spouse wants to cancel or in case one spouse’s health changes.