Best Life Insurance for Parents

Contributor, Benzinga

Looking for the best rate and coverage for life insurance? Consider Sproutt.

If you’ve heard of life insurance before, you’ve probably wondered… Who buys life insurance anyway? Do I need it? If you’re a parent, you might want to consider life insurance and how it can benefit your family. This guide to life insurance for parents will help you pick out the right option for you.

If you’re buying life insurance, you want to make sure you buy the best life insurance, right? Best is subjective, so that’s why we’ve put together some of the best companies you can choose from depending on your needs.

Best for Term Life Insurance: Fabric

If you’re looking for a company that specializes in term life insurance, Fabric can give you what you’re looking for. It offers 10, 15 and 20-year term policies with coverage that ranges from $100,000 to $5 million. You can also purchase an accidental death insurance policy from this provider.

Fabric is a top choice for parents because it’s a company that’s designed to make getting life insurance for your family an easy process. It even offers a free service that allows you to put together a will and name a guardian for your children.

You’ll also benefit from the Fabric Vault, which allows you to store and organize all of your important financial information together in a secure digital environment. 

get started securely through Fabric Life Insurance’s website
Age Requirements
21 – 60
N/A
1 Minute Review

Fabric offers term life insurance, free digital will creation and other tools to help you better your family’s financial life. They’re the one stop shop for young families looking for financial security.

Fabric offers 10, 15, 20, 25 and 30 year term options and coverage ranging from $100,000 to $5 million.

Fabric offers highly reviewed online customer service through its app and website and has the highest TrustPilot rating in its class.

Best For
  • No exam required for most
  • Those who want to avoid the hassle of insurance salesmen
  • New or expecting parents looking for a broader suite of financial tools
Pros
  • Affordable premiums
  • Free digital will creation
  • Free app with helpful tools for parents
  • Apply and see your rate in less than 10 minutes
Cons
  • No term life coverage in New York or Montana
  • Can’t increase coverage after purchasing

Best for Personalized Options: Sproutt

Sproutt is an independent broker who works with you to find the best life insurance for your family. When you visit the Sproutt website, you can enter a quick 8-step questionnaire to match you with the right coverage based on your lifestyle and needs. If you choose, you can fill out your application online without speaking with an advisor.

Or if you’d like some assistance, you can speak with an advisor about your options before you complete your application. The customer service team at Sproutt can help walk you through life insurance FAQs and answer any other questions you might have. 

get started securely through Sproutt Life Insurance’s website
Age Requirements
25-55
N/A
1 Minute Review

One of most quickly growing life insurance platforms, Sproutt leverages insurtech to provide its Sproutt Instant approval life insurance. Get instant-issue policies in under 15 minutes from application to coverage. No medical exam necessary for qualifying applications.

This process is entirely online. You have the option to speak to an experienced Sproutt advisor for assistance or complete your coverage purchase on your own. It works with top-rated life insurance carriers like AIG, SBLI, Principal and Sagicor Life. 

The company has also developed its Guided Artificial Intelligence Assessment (GAIA) platform to power the Quality of Life Index. The platform evaluates your lifestyle to offer personalized recommendations to help you live a healthier lifestyle.

Best For
  • Numerous policy and carrier options
  • Those who prefer no-exam life insurance
  • Young parents
Pros
  • Works with top-rated life insurance carriers
  • Online process
  • Diverse policy options
  • An AI-based assessment delivers perks to those with healthy lifestyles
Cons
  • Not best for unhealthy people on a budget

Best for No Medical Exam: Bestow

One of the things you should understand about life insurance policies is that you may need to undergo a medical exam before you can receive coverage. If you’re looking for quick coverage with no medical exam, Bestow can probably give you what you need.

Bestow offers a quick online application process and immediate coverage if you’re approved. You can choose from a 10- or 20-year term policy with coverage between $50,000 and $1.5 million. Bestow’s low rates and 100% online process make it a convenient option for many families.

Get started securely through Bestow Life Insurance’s website
Disclosure: *excludes New York
Age Requirements
18-59
N/A
1 Minute Review

Bestow offers 2 kinds of life insurance policies: 20-year level term policy or a 10-year level term policy.

Through its policies, you may qualify for up to $1 million in term life insurance. That may seem like a sizeable sum, but if you have a spouse and children, you have to consider the cost of things beyond your mortgage, such as daycare and eventually college, as well as the loss of wages over time.

Bestow uses its proprietary technology to underwrite your insurance policy, so the application process is much faster than with traditional life insurance companies. They’re also backed by Munich Re and North American Company for Life and Health Insurance, 2 A+ rated insurance companies.

Best For
  • People who are looking for short-term life insurance
  • Individuals who don’t want to go through the hassle of having a medical exam or blood work done to get coverage
Pros
  • Plans start at just $8/month
  • Decent coverage options if you need insurance quickly and without hassle
Cons
  • Offers 2 types of plans; does not offer whole or universal life insurance policies
  • The 10- and 20-year plans not available to users under 21 or older than 55

Best for Flexible Coverage: Ladder

Ladder understands that throughout your lifetime, your financial situation is bound to change at least once or twice. That’s why it offers the ability to decrease your coverage if you no longer need the amount of coverage you originally applied for.

If you expand your family and want to add more coverage to your policy, Ladder makes it easy to apply for that change as well.

This online insurance agency offers competitive rates and quick coverage. You can apply for life insurance from Ladder in 5 minutes online and receive an instant decision. You could be eligible to accept and begin your coverage immediately.

get started securely through Ladder’s website
Disclosure: Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Age Requirements
20 – 60
N/A
1 Minute Review

Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.

You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

  1. You can apply for life insurance coverage with Ladder right now via the online application.
  2. Find out whether you’re instantly approved.
  3. Accept your offer — including affordable prices and no hidden fees.

Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company of New York and in the other states and DC by Allianz Life Insurance Company of North America. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.

 

Best For
  • Term life insurance
  • Online application
  • Policyholders between 20 to 60 years of age
Pros
  • Up to $8 million in coverage
  • Price lock guarantee
  • No policy fees
  • 30-day money-back guarantee
  • Adjustable coverage
Cons
  • No policy riders
  • Term life insurance only

How Much Does Life Insurance Cost?

It depends on the provider and your unique situation. Get an estimate below.

Life Insurance Premiums for Parents

Your life insurance comes with a premium. The premium is the amount of money you need to pay the insurance company for your policy. Basically, your premium cost is based on the amount of risk you pose. Every policy comes at a risk for the insurance company, whether it’s life insurance for a young parent or life insurance for seniors. When a company insures you, they are assuming a financial risk by giving you your policy.

A few factors your insurance company will consider when determining your risk are:

  • Your age
  • The type of coverage
  • The amount of coverage
  • The term length

Here are some examples of how these factors can affect your premium. (prices listed as of 12/10/21).

AgeCoverage AmountTermCompanyQuote
28$500,00020-yearHaven Life$31.83/month
28$1 million15-yearHaven Life$54.32/month
35$500,00020-yearPrudential$28.44/month
35$1 million15-yearPrudential$39.81/month
44$1 million15-yearUS Life$58.27/month

Whole Life vs. Term Life

One of the major questions to consider when it comes to life insurance is whether you should get whole or term life insurance. Be sure to compare your options before you decide which life insurance is best for you.

Whole life

Whole life insurance is a form of permanent life insurance — it stays in effect for the rest of your life, as long as you pay your premiums. This type of life insurance also has a cash value component.

A portion of your premium payments will go towards the tax-deferred cash value. Over time, your cash value will grow and you will be able to access and use this money. You can use your cash value to pay for your policy, finance a loan for yourself or help you cover your expenses in retirement.

It’s important to note that the cash value of your policy will not be given to your beneficiary after you pass away. For example, if you have a $500,000 whole life insurance policy, your beneficiary will only receive that amount when you pass away. The amount that is paid out to your beneficiary is known as your death benefit.

Term life

Term life insurance is a policy that only lasts for the number of years you select when you purchase the policy. Terms are usually offered from 10–30 years. When your term ends, your life insurance policy expires. Your insurance company may allow you to convert your term life policy into a whole life policy at that point. However, in most cases, you’ll potentially need to purchase a new life insurance policy after your term life policy expires. 

Term life insurance is a popular option because it tends to be less expensive than permanent life insurance products like cash value life insurance. Your term life insurance policy works just like a whole life policy, except it does not have a cash value. 

If you pass away while your term life insurance policy is active, your beneficiary will receive your death benefit. The death benefit will be the coverage amount you selected when you purchased the policy. For example, if you purchased a term life policy with a coverage amount of $750,000, your beneficiary will receive this amount when you pass away. If your policy expires before you pass away and you do not purchase a new one, your beneficiary will not receive a death benefit.

3 Reasons to Buy Life Insurance as a Parent

Sure, carrying a life insurance policy adds another monthly bill to your budget. It can also be hugely beneficial to your family. Here are a few reasons parents should consider purchasing life insurance:

  • To cover funeral costs: If you pass away, the last thing you want your loved ones to deal with is shelling out the money to cover your burial costs. Having a life insurance policy can ease this burden on your children.
  • Not to leave your children responsible for paying your debts: Costs add up. And when you’re a parent, there are more costs than you could anticipate. Take a minute to think about all of your living expenses. Major things might include mortgage or rent payments, car payments and monthly utilities. That doesn’t even factor in other common debts such as student debt and credit card debt. If you pass away, you don’t want your children to be responsible for any of your leftover debts. Paying a relatively small amount each month for your life insurance can ease this burden for your children.
  • If you share expenses with your spouse: If you and your spouse work, you can imagine the financial strain your family might have if one of you were to lose your job. If your spouse is a stay-at-home parent, what would happen if your income was no longer there? Purchasing a life insurance policy will help ensure that your family can survive financially without you.

Next Steps

When you purchase a life insurance policy, you’ll want to consider a few things beyond the life insurance company you choose. You’ll want to think about how much coverage you need to financially support your spouse and children when you’re gone. It’s also important to balance the amount and type of coverages with what premium cost fits in your budget. Once you know what you need, get quotes from insurance companies to see what each can offer you.

Frequently Asked Questions

Q

Can a parent purchase life insurance for their child?

1
Can a parent purchase life insurance for their child?
asked
A
1

Yes, depending on the provider. Some do have age minimums. But either way, you can make your child a beneficiary of your life insurance policy.

answered
Q

Can you purchase life insurance for your parents?

1
Can you purchase life insurance for your parents?
asked
A
1

Yes, you can purchase life insurance, burial insurance and end of life expenses coverage for your parents. Some providers do have age limits and finding cheap policies gets harder as you age. It’s best to have a comprehensive life insurance strategy for the whole family as early on as possible.

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Methodology

Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.