Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 2, 2021

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The Brief

  • Riders are available for family life insurance policies
  • The type of policy you buy will affect your rates
  • State Farm is the best overall family life insurance company

Family life insurance is an important safety net for families to have. So what is a family life insurance policy? And do I need to buy life insurance for stay-at-home parents?

Read through our guide to find out more about family life insurance and what policies you may need.

Buying family life insurance? Enter your ZIP code above to get free family life insurance quotes.

What is family life insurance?

Family life insurance is a term that covers multiple policies. Family life insurance provides a financial payout to your family in the event that income is lost due to the death of a policyholder.

It is especially important to consider life insurance for low-income families that would struggle to make ends meet if the breadwinner passed away.

Because the cost of taking care of children is often very high, stay-at-home parents should also consider buying family life insurance to help cover the costs of child support.

Although many people only think to buy life insurance for the breadwinner, buying life insurance for both you and your spouse can help to support your family in the event of either of your deaths.

You do not need to buy family life insurance for children or grandparents if no one financially relies on them. However, there are options available to customize your policy to include children and grandparents in riders.

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What are the best family life insurance companies?

It’s important to choose a company that best fits your family’s needs, so comparing companies and what they offer can greatly narrow down your search for family life insurance.

Some of the best family life insurance companies include Northwestern Mutual, MassMutual, Prudential, Transamerica, and State Farm.

The best overall family life insurance company is State Farm with its many coverage options, low rates, and available riders.

Northwestern Mutual is the best for families looking for whole life insurance policies, and MassMutual is the best for those looking for term life insurance policies.

Prudential has the best child riders available including a children’s protection rider as well as a children level term rider. These options are perfect for families looking for extra coverage for their children.

The most affordable family life insurance company is Transamerica, making it a good option for low-income families.

Individual vs. Joint Life Insurance Policies for Couples: What is the best family life insurance?

When buying a family life insurance policy, it’s important for couples to consider individual life insurance and joint life insurance.

Individual Life Insurance

Individual life insurance is more commonly chose among couples due to the policy’s simplicity and coverage options.

Individual life insurance policies make it easy for the surviving spouse to receive a death benefit if the other spouse dies.

With individual life insurance, you have the option to choose between term life insurance and permanent life insurance based on how long you want the policy to cover you.

Joint Life Insurance

Joint life insurance is a type of policy that delivers a payout after both spouses die. This payout can help to support your children by providing financial relief from the cost of services such as school and child support.

However, joint life insurance policies are long-term and the beneficiaries will only receive a payout after both spouses die.

If one spouse dies first, the other will not receive a payout and will have to support their family on their own income. Therefore, joint life insurance may not be a suitable option for low-income families.

How much does family life insurance cost?

Family life insurance costs vary depending on your health status, age, and gender, as well as the type of policy you purchase and any riders you add on.

Taking the example of a male in his 40s purchasing an individual life insurance policy, the average annual rates for a $500,000 policy are $341 for a 20-year term and $6,042 for a whole life insurance policy.

Whole life insurance is generally a more expensive option if you want to buy family life insurance, but it offers lifelong coverage and builds cash value.

Joint life insurance is usually cheaper to buy than whole life insurance. Family life insurance rates for a couple in their 40s purchasing a $500,000 policy together are $2,436 annually.

Looking for affordable family life insurance? Enter your ZIP code below for free quotes from the top family life insurance companies.