Family Floater Life Insurance Policy and How They Work
A “family floater” plan provides life insurance coverage to all family members. These policies are a smart choice for many families. Also called “family life insurance,” your entire family has life insurance with a single policy, a far simpler and more efficient process.
Life insurance policies are typically purchased to cover the parents. If one of the breadwinners for the family should suddenly pass away, those left behind can suffer extreme financial stress. Life insurance is the ideal way to protect a family facing this situation, as it pays out rapidly (as opposed to needing to go through probate) and is not taxed. With a family floater life insurance policy, both parents and the other family members are covered without multiple policies.
Life Insurance for the Entire Family
Term family life insurance policies are more affordable and, for a young family, provide peace of mind knowing that your loved ones are protected. Whole life insurance has the advantage of building cash value over time. If you need help deciding on life insurance, speak to one of our local agents who can show you all your options, including family floater life insurance.
Family Whole Life Insurance
A whole life family life insurance policy may be suitable for your family. These policies don’t expire if all premiums are paid. A portion of every premium payment each month will increase the policy’s cash value. Once the cash value has built up, you have the option to borrow from the policy, which can be a significant advantage. You can choose the level of coverage that makes sense for your family, such as mortgage payoff, the cost of educating a child, and other needs.
Family Term Insurance
Family floater term insurance is a more affordable option for young families. Young parents may decide to put one of these policies to ensure the rest of the family does not have financial troubles if one parent dies. For the security and safety of your family, a family term policy is the most affordable version.
A Family Floater Life Insurance Policy – Is It Right for You?
A family life insurance plan protects families as they grow. These policies provide the funds your loved ones need when the unexpected happens. The funds from the policy can help your family pay:
- Mortgage: Your mortgage payment is likely the largest monthly expense. Based on the policy limits, the monthly payment can be met with funds from life insurance or the entire mortgage paid off.
- College: Educating a child is expensive. The benefits paid from the policy can help your children achieve the education they deserve without going deeply into student debt.
- Living Expenses: A family’s cost of living continues to increase and keeping food on the table, the vehicles in working order, and keeping current with monthly bills can add up fast. The policy benefits can pay for living expenses and more.
- Leave a Legacy: The life insurance policy can leave a lump sum for your loved ones. The funds can be invested or used to help your children with the down payment on their first home or whatever is needed.
If you want to know more about family floater life insurance, speak with one of our helpful local agents. We can help you find the best policy to suit your budget.