Term Life vs. Whole Life Insurance for Parents

By Compuquotes Team on March 26th, 2008

If you are a parent of any age, then you are almost guaranteed to suddenly be thinking about your own mortality and about what might happen to your beautiful children should something happen to you or your spouse. In addition to the importance of creating a will to make sure that your children are taken care of by guardians of your choice, you are likely thinking about life insurance to ease the burden of caring for young children should something happen to you.

Of course, this is the umbrella that you hope never has to be opened, but it would be foolish to walk out into the gathering storm without one in the hopes that it will not rain. The best choice for life insurance if your only concern is the raising of your children is a policy that will last from now until a time when they are grown and out of the house, able to take care of themselves.

Ideally, of course, you will want a policy that covers you throughout your entire life, as the cost of a funeral (for example) will not just go away once your children move out of the home. The best solution is to purchase two policies: a small whole life insurance policy to cover you for good, and a larger term life insurance policy. The term life insurance policy will take care of larger costs like child care and possibly paying off a house or supplying additional funds so that lost income does not make such a dent in your family's life.

These two policies should be able to work together to create the widest net of coverage, allowing you to take care of your children while they are at home, and still have enough coverage to take care of yourself and your spouse should something happen once the children are gone. If you are only able to afford one policy, however, then term life might be the way to go until your children are gone and you can reevaluate your life situation.

While a whole life insurance policy would technically offer you the same coverage, the coverage would be more expensive and would not decrease in value after your children are gone. This means that you might be covered for a great deal more money than your survivors would need once you reach your golden years. If this sounds like a potential problem, then whole life insurance is certainly not the way to go for your current life stage.

Choosing the right life insurance policy for your family is an important decision, and one that effects all of you for a long time to come. You will have made a sound financial investment in your future and the future security of your family. Consider carefully, and you will be able to rest easy in the knowledge that your family is protected no matter what happens. Not that you'll need it, but just in case.

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