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Best Life Insurance for Parents

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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.

Best Life Insurance for Parents:

  • Best for Term Life Insurance: Fabric
  • Best for Cheap Life Insurance: Haven
  • Best for Whole Life Insurance: Northwestern Mutual
  • Best for Personalized Options: Sproutt
  • Best for Flexible Coverage: Ladder

Best Life Insurance Companies for Parents

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.

Age Requirements
21 – 60
Coverage Amounts
$100,000 to $5,000,000
Starting Rate
$12/month
Application Length
10 minutes

1. 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. 

Age Requirements
18 – 64
Coverage Amounts
$50,000 – $3,000,000
Starting Rate
$14.99/month

2. Best for Cheap Life Insurance: Haven

As a parent, you might be looking for a cheap life insurance option to give you coverage while keeping your costs low. Haven offers affordable coverage options with no commission fees to its life insurance customers. You can choose a term length from 10–30 years.

Coverage amounts with Haven range from $100,000 to $3 million. You’ll benefit from Haven’s wide range of resources on its website and a quick digital application process. You may also qualify for additional benefits, such as discounts on family health services and a free service to create your legal will.

Age Requirements
18 – 100

3. Best for Whole Life Insurance: Northwestern Mutual

If you prefer a whole life insurance policy, you’ll want to find an insurance company that you’re comfortable working with for a long time. Northwestern Mutual is a well-established company with strong financial strength ratings, making it a good option for a whole life insurance policy. You’ll benefit from Northwestern Mutual’s dedication to helping you meet your financial goals, starting with its matchmaking process to set you up with a financial advisor.

After answering a few questions online, your new financial advisor will reach out to you to help you find the right type of life insurance to meet your goals and your budget. And, with Northwestern Mutual your premiums will never increase.

Age Requirements
25-55
Coverage Amounts
$50K to $4M
Starting Rate
$9 a month

4. 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. 

Age Requirements
20 – 60
Coverage Amounts
$100,000 to $8 million
Starting Rate
$15/month
Application Length
5 minutes

5. 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 company 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.

Age Requirements
21-55
Coverage Amounts
$50,000 – $1,000,000
Starting Rate
$8/month

6. 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 million. Bestow’s low rates and 100% online process make it a convenient option for many families.

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 3/30/20).

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.

Our Recommendation: Find your best fit with Policygenius

Finding the right company for your situation means considering all of your options and getting the right advice. Policygenius makes it easy to get personalized quotes from top insurers and apply for your best policy all in one place. Their combination of online tools and support from unbiased, licensed experts makes Policygenius the best site to help you get insurance right.