Family Life Insurance

The Importance of Family Life Insurance and Why You Should Have It

Stop and think

We rarely stop to think of anything bad happening to our families. But unfortunately, bad things DO happen to our families, and for this reason it is always advisable to look into some type of family life insurance policies in order to be prepared in case something untoward was to happen to one or more family members. Although a family life insurance policy can never replace family, it can give some comfort in terms of easing the burden of financial distress, etc, caused by an income-earning family member dying, or the burden of funeral expenses in the case of a child or spouse dying unexpectedly.

What is required for family life insurance?

In order to avail of a family life insurance policy, a number of criteria must be met by those who stand to benefit from such a policy. For example, the dependents of the main income earner and primary policy holder must all be below the age of 22. In the case of someone who is over 22, they must be incapable of self-support. Dependents can be either your own biological children, adoptive children, step-children or foster children. Foster children must be living with the policy holder in a regular parent-child relationship at the time of the policy. Grandchildren only qualify if they are also foster children of the policy holder.

Benefits of having family life insurance

One of the main benefits of a family life insurance plan is that you can rest in the knowledge that your family will be taken care of in the event of your death. Some companies will encourage you to take out a double-coverage policy for your spouse, in the event of their untimely death. Most companies now take into account that a lot of families are two-income families, and this is a benefit of family life insurance because it is important to maintain a reasonably similar level of income in the event of the death of one of the earning spouses.