Buy Family Policies From Life Insurance Companies in Urbandale IA

by | Jan 8, 2016 | Insurance


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A family life insurance policy is a type of coverage that protects children if a parent dies. Most families want to find more information on this type of policy because of the high cost of childrearing and because of the worry that the surviving spouse would be unable to provide for the children. Family policies from Life Insurance Companies Urbandale IA, protect the insured for a defined period, usually until the children reach the age of majority.

How Family Insurance Policies Work

If the named insured passes away within the term of the policy, the surviving family members get regular payments every month for the rest of the policy term. When the term has concluded, the heirs receive the policy’s value in one lump sum. For instance, parents can buy a $200,000 policy with a term of 20 years. If one parent dies after ten years, the rest of the family gets a monthly payment for the next decade. Payments are based on a percentage of the policy’s value and can vary widely.

The Benefits of Family Insurance Policies

If a catastrophe occurs, taking the life of a parent, family insurance policies protect the surviving spouse and children, keeping them in the lifestyle to which they have become accustomed. Most term policies can be renewed at expiration, which keeps the family continually covered. Another benefit of term life insurance policies is that the need for life insurance diminishes as people age. Moreover, these policies are typically less expensive than other kinds of life coverage. They can be affordable, even for growing families.

Disadvantages of Family Life Policies

A policy from Life Insurance Companies in Urbandale IA can play an important role in any family’s financial plan, but there are disadvantages to consider. These policies carry no guaranteed payout or cash value while a whole life policy has a value that can be borrowed against without penalty. If a policy term ends and the family still needs coverage, they’ll have to buy a new policy at a significant expense. Families should consider such policies while the children are young to get the reassurance that comes from knowing that everyone is protected regardless of what happens.

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