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Life insurance is a contract between an insurer and a policyholder, where the insurer agrees to pay a specified death benefit upon the insured’s death, provided the contract is active. In exchange for premium payments made by the policyholder, the insurer guarantees this death benefit, which is paid to the beneficiary—a person, trust, or corporation designated by the policyholder. The primary purpose of life insurance is to replace the lost income of a family’s financial provider.

Example: Peter, a 40-year-old husband and father of two, earns $90,000 annually as a skilled tradesman. He maintains a $1,000,000 life insurance policy, costing $49 per month, with his wife as the named beneficiary.

In most cases, a non-working spouse can obtain life insurance. Although they may not generate income, their death could create financial burdens, such as childcare costs, funeral expenses, or other final costs. Typically, a non-working spouse can purchase a life insurance policy with a death benefit ranging from 50% to 100% of the working spouse’s policy, though underwriting guidelines differ by insurance company.

Purchasing life insurance for your children can serve multiple purposes. Here are key reasons to consider it:

  1. Financial Protection for Final Expenses: Although rare, the loss of a child due to illness or accident can bring unexpected costs. Life insurance ensures funds are available to cover funeral and other final expenses.
  2. Cash Value Accumulation: Many child life insurance policies are whole life plans that build cash value over time. This savings component can be accessed later for purposes like college tuition or gifted to the child in adulthood.
  3. Flexible Coverage Options: Certain policies allow you to increase coverage in the future without requiring proof of insurability, providing adaptability as your child grows.
  4. Convenient Child Riders: Adding a child rider to your own life insurance policy is often a cost-effective option. Typically, a single rider covers all eligible children for one premium, simplifying the process.

It varies depending on the company, but usually less than 30 days.

Companies who do not require paramed exams may issue policies immediately for healthy individuals seeking less than $500,000 in coverage. Most life insurers provide coverage during the underwriting period, as soon as an application is signed.

GetAQuote.Life, a service of M1S Insurance Agency Inc., offers you the flexibility to obtain quotes and purchase life insurance policies directly or to consult with our experienced agents for personalized guidance.