If you’re just starting a new family whether by marriage or by introducing a new life into the world, the last thing on your mind more often than not is life insurance policies for your family, the thought of life insurance is a grim topic that many would not like to think of until their later years.
However, many don’t realize that it’s an essential form of financial protection for the loved ones that you leave behind if you were killed or have passed away unexpectedly. In this article will be going over what the best life insurance policies are for new families and parents as well as what to look for if you need to cater your plan to your own specific needs.
How We Rate Our Reviews
There are a good number of factors that determine why we give the ratings that we do after we’ve spent a significant amount of time choosing which products to review. These factors are:
Ease of Application: You shouldn’t have to pay hours shopping for a life insurance policy especially when you have a newborn that demands all of your attention. Getting a plan that makes your application process easy is our priority when we rate our choices.
Available Options: Everyone is different and being able to have the flexibility to cater to you and your families coverage needs are very important and should have a decent amount of consideration. Companies and coverages that utilize this well will rate higher on our list.
Cost of Coverage: The cost of coverage will vary based on each who applies; however when a new baby comes into the family, we understand budgets will be tight. Higher rated policies will keep families with tight budgets in mind.
Financial Rating: If a company’s financial rating is less than stable, stay far away from it. We’ll be looking at the best financial scores of the choices we’ve made and determine what will be the safest option to invest your money in.
The Best Life Insurance Policies For New
Families And Parents
Haven life hasn’t been around a long time. However, this company is actually an offshoot of its parent company MassMutual which gives it more credibility as a life insurance company.
Haven life is perfect for parents who are eager for a quick application process, most applications having the ability to process within ten minutes which sits perfectly with parents that are always on the go.
Haven life also provides medically underwritten term life insurance, but that means you will have to jump through some hoops to apply, but the results are well worth the initial hassle. If your health insurance company can vouch for your health is right, this information can lower your premiums which means you pay less every month for the same policy.
Overall, it’s a great way to keep your budget flexible.
If you’re not confident that Haven Life can provide a policy that fits your budget, they have a tool on their website that allows you to go through your options to see what you’re looking at for plans and their costs. This tool can work in your favor when you’re shopping around with other companies to compare policies.
Haven Life has an A++ rating in financial strength and claims-to payability, and they paid over five billion dollars in combined annuity and insurance benefits in 2016 alone. This company swears by level term premiums which means your rates won’t fluctuate once you’ve established them. You’ll pay the same amount every month which is good news for tight budgets.
You’ll also be able to take advantage of the accelerated death benefit. Haven life provides, which allows you to withdraw a portion of your policies death benefit if you come face-to-face with a terminal illness. Doing this will enable you to pay off expenses and live the rest of your life focusing on what matters the most.
You won’t have to worry about dealing with agents who get paid through commission, which means that there won’t be any upselling, you won’t have to deal with any extra fees, and overall you’ll feel good about the purchase decision that you’ve made without feeling pressured into anything that you didn’t want.
Even better than that, if your level term expires but you like the service, you can renew it at a higher rate, but you don’t have to worry about additional underwriting once you do.
The rates aren’t unreasonable either, and their website states that for a 35-year-old male in excellent health you can qualify up to $500,000 for a 20 year Haven Term Policy and it would only cost $21 a month.
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Many people recognize State Farm as a car insurance company, but this company also extends its services towards life insurance as well. This company offers both term life and whole life insurance policies you can always turn your term life policy into a whole life or Universal life policy if you decide to later.
State Farm gives you a reasonably comprehensive View of what each of their policies provides as far as benefits are concerned. For term Life policies, You’ll get the advantage of simple and affordable coverage for the strict length of time. You are guaranteed a death benefit, and it’s equal to its cash value.
The whole life insurance program is a lifetime coverage that gives you access to its cash value, as long as premiums get paid, you will have the policy for life and as its cash value grows it becomes tax-deferred. You’ll get lifetime level premiums as long as you have the plan intact and there’s even the option to earn dividends from your policy if available.
Universal offers a different set of advantages and restrictions than the other two options listed. With universal life, you will have the benefit of flexible coverage and flexible premiums, and it’s meant for permanent protection with the flexibility to change things as you need. Just like with whole life insurance, your cash value growth is tax-deferred with universal.
Universal is available for the insured’s lifetime, but you don’t learn dividends, and you won’t be able to take advantage of Lifetime level premiums.
We like State Farm because they make it easy to shop for a life insurance policy that really works for your family and you can always add Riders as needed whenever you need to. You’ll be able to get approved quickly thanks to the immediate answer term which gives you the coverage that you need instead of waiting days to determine if you have it.
They have excellent customer service which makes it easy to figure out what works best for you if you have questions, their team will be able to help you out. Their financial ratings are fantastic, and you’ll have access to a calculator on their website that gives you an idea of how much life insurance you will need to begin.
You can usually expect a life insurance policy to cost between $27 and $42 per month depending on the term and your health, however, being able to have a company that can pay out their policies quickly and on time helps give you peace of mind where you need it.
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This company is another A-rated life insurance company that is likely one of our oldest in our list. Founded in 1907; this company provides some of the best competitive underwritings for all of their applicants especially with specific elements such as:
- Gender-specific cancers
Some different riders are available that you can add on to your overall life insurance policy if you have specific circumstances that cater to your concerns. These riders include:
- Disability Income Rider
- Accidental Death Benefit Rider
- Accelerated Death Benefit Rider
- Child Protection Rider
These policies are also convertible; if you feel that your term life policy would better serve as a permanent life policy, then you can convert them. You will have to discuss with your agent how much of an increase your premiums are going to be as well as what conditions you’ll be subject to once they get changed over.
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Nationwide is another company that’s well known for its car insurance but it also offers life insurance policies for young couples as well as older couples I like. What’s nice about Nationwide is that you’re able to bundle your current car insurance policy with your new life insurance policy if you have car insurance through Nationwide.
As with most life insurance companies, Nationwide offers term life, Whole life, universal life, variable universal life policy options in which the rates are all dependent on your individual needs as well as the needs of your family. Nationwide is also a very convenient choice because you can manage your policies through their app and change things whenever you need to.
They have tools on their websites that allow you to determine how much of a policy you need as well as let you get a free quote on what you qualify. You can usually receive an answer within minutes, and you won’t have to go through any excessive medical evaluations to get the best coverage.
There’s plenty of different options that you can add to your policy whenever you need to, and you’ll be able to talk to an agent at any time when you have questions that need answers. Nationwide has an excellent financial rating, and as a result, you can trust that if you need to use your insurance, that there will be a quick and easy payout.
Allstate is another car insurance company that also do life insurance policies. Allstate has been in business for over 85 years, And it has a combined net income of over two billion dollars as of 2015. This factor means that its Financial rating is on par and you won’t have to worry about not getting a payout if you need it.
It’s received an A+ across-the-board from rating services such as A.M. Best, Standard & Poor’s, and Moody investor services. Allstate also has an A+ rating in the Better Business Bureau for there high ratings in customer satisfaction and service.
He can receive a large assortment of different life insurance protection policies through Allstate, and that includes term and permanent life insurance protection. All the long-term stable systems will even provide a build-up tax-deferred cash value over time.
When you first start looking through the type of term Life policies that are available through this company, you’ll see that they offer plans such as:
- Basic Term Life Insurance
- Trufit Term Life Insurance
The basic policy and gives its purchaser I guarantee protection for 15 years as long as the premiums get paid every month and during this time your premiums will remain level, so you don’t have to worry about them going up in price.
Essential also provides several different coverage amount options which include $50,000 to $150,000. This policy also doesn’t require the applicant to go through any medical examinations as a part of the underwriting process. This point would be perfect for someone who suffers from adverse health conditions and needs coverage options.
Usually, with the underlying policy, you can get approved and under a couple of minutes just because there aren’t any major medical exams that have to be looked over and evaluated.
The TrueFit term life insurance enables an individual to obtain either 10 or 30 years of term life coverage. This plan can grow with its applicant thanks to the various layers of protection that come with it.
The TrueFit also helps the insured if their needs change over time and may Grant the ability to have its premium lowered, so you don’t have to pay as much. You can add different riders to the policy depending on what it is that you need.
If your family is more interested in a permanent life insurance policy, Allstate offers that too as well as death benefit protection and the ability to build up cash value within the administration. These cash values are allowed to grow on a tax-deferred basis which is great if you need to withdraw money, but you don’t want to pay the taxes on it.
Just like how there were two options with the term life insurance, permanent life insurance comes with two different choices to go from depending on your needs. Allstate life insurance company offers whole life coverage and then universal life coverage as a part of the permanent life insurance protection that the company provides.
Whole life gives you coverage for the entirety that you’re alive as long as the premium gets paid. Let’s coverage guarantees a death benefit amount despite age or health issues, and there’s an interest rate that’s attached to it that will grow the longer that the policy is in place.
Universal life coverage also offers permanent life insurance coverage and a cash value benefit to the policy, but it’s often more flexible than the whole life coverage. With a universal life coverage, the amount of the premium that goes towards the death benefit and the amount that goes towards its cash value is changeable by the policyholder.
This example is of course within reasonable means, but it may be a necessary component depending on life events.
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AIG Direct is one of the largest insurers in the world, capable of boasting over 90 million customers in over 80 different countries. They were even one of the essential insurers during the 2008 financial crisis that occurred in the United States, where the company had to be bailed out for 182 billion dollars in which the company was capable of repaying that money plus interest.
Being able to repay their debt to the government by 2012, am best financial institution has rated AIG Direct an a for their financial strength rating. This factor gives you a good idea that this company will be able to properly pay out any claims that you put in which makes it easier to work with and trust your company.
AIG Direct deals specifically with these types of policies as far as life insurance is concerned:
- Term life insurance
- Index universal life
- Variable universal life insurance
- Whole life insurance
- Universal life insurance
Their term life insurance policies adopt similar standards to other companies on our list where they will do terms for ten, 15, 30 and even 35 years but it’s their QoL Flex Term that offers 18 different term possibilities and the ability to access the death benefit if diagnosed with a terminal illness.
Any of their term plans get easily converted into long-term or permanent plans at any point that the policyholder desires. On average a 40-year-old male with a $250,000 coverage plan would only have to pay $13.81 a month in a ten-year term life insurance policy, the same scenario for a female would have to pay $13.59 a month for the same coverage.
Quotes are free and personalized to your independent needs as well as what you know your family will need if something were to happen.
What We Think
Life insurance can be a daunting process, but all of these companies make the process a lot easier to determine what it is that you need to ensure that your family can Thrive even when you have passed on.
Term life insurance policies are the most ideal for young couples and new families because the rates are much cheaper and there’s a lot of open options available for when life throws curve balls.
We like Haven life the most simply because they provide a lot of the core Essentials that new families are looking for in life insurance policies, but of course, in the end, the final decision will be yours based on what your family needs.