Life Insurance

Life Insurance for Parents

Aug 29, 2023
Parents reading to daughters in tent
Being a parent means focusing on what’s best for your kids and being busier than you ever thought humanly possible. If you don’t already have life insurance, you may be wondering if someone could please hand you what you need to know, and help you get quality coverage for a great rate as fast as possible. Well you’ve landed in the right place! We have a lot of great information right here, and you’ll be glad to know it really only takes 10 minutes to apply for same-day life insurance at Ethos with no medical exam or blood test, just some health questions online.

The best kind of life insurance for parents

There are two common types of life insurance that are great options for parents.

Term life insurance: Term life insurance is a popular choice for parents seeking affordable and straightforward coverage for a specific period, typically ranging from 10 to 30 years. This type of policy offers a death benefit to your beneficiaries if you pass away during the term. When  children are young and dependent on parental income, term life insurance is a great option to help cover major expenses such as mortgage payments, educational costs, and daily living expenses. 

Permanent life insurance: Permanent life insurance is an option that provides lifelong coverage as long as premiums are paid. It offers a death benefit for your beneficiaries and also includes a cash value component that grows over time. Permanent life insurance is an attractive option for parents looking for a policy that builds cash value. The accumulated cash value can be accessed during your lifetime through policy loans or withdrawals. 

The best time in your life as a parent to get life insurance

There’s no right answer for everyone. Here are some possible answers to this question.

  • As soon as you are financially responsible for someone else.
  • When you have your first child.
  • As soon as you become aware that someone you love would be negatively impacted financially when you pass away.
  • When you have the ability to make a monthly payment so that loved ones could receive a tax-free lump sum in the future.
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When parents should potentially update their life insurance

As your life changes, it’s a good idea to review your life insurance coverage and update it to match your new situation. Here’s a list of key life events that merit checking and updating your life insurance coverage amount, beneficiaries, and rates:

  • Marriage or divorce
  • Birth or adoption of a child
  • Changes in income and/or job benefits
  • Home purchase or mortgage refinancing
  • Health changes
  • Approaching retirement

By keeping your life insurance policy up to date, you can have peace of mind knowing that your family's financial future has a protection plan in place. 

How to get the best life insurance rate for parents

Life insurance companies base the monthly rate, or your premium, on a number of factors, including your age, health, whether or not you smoke, and your credit score. Here are some basic things you can do to help you get the best price:

  • Don’t put life insurance off. Rates go up every year you age, so it’s best to secure your rate when you’re as young as possible. 
  • Proactively take care of your wellbeing. Eat well, exercise regularly, and don’t smoke or abuse drugs or alcohol. Taking care of yourself in these ways substantially increases the odds of you being healthy in the long run, and in general, healthy people tend to get lower life insurance rates than people with health problems.  
  • Shop around for the best rate. Traditional life insurance underwriting practices tend to take weeks to finalize your rate. Since people—especially parents!—are so busy, at Ethos we’ve designed the process to be super quick and easy. You can get a free personalized estimate instantly here and get final rate approval the same day you apply. 

How much life insurance coverage for parents is best? 

While there is no one-size-fits-all answer to how much life insurance coverage parents should get, here are some factors to consider when deciding on how much coverage you want to purchase. 

  • Income replacement: Calculate the number of years your children will be financially dependent on you and multiply your annual income by that number. This will help ensure that your loved ones can maintain their current lifestyle and cover essential expenses.
  • Debts and liabilities: Take into account any outstanding debts you have, such as a mortgage, car loans, student loans, or credit card debt. Life insurance can help cover these financial obligations, preventing them from burdening your family in the event of your passing.
  • Childcare and education costs: Don’t forget to factor in the cost of childcare (this is easy to forget if you or your spouse currently stay at home to care for the children). Additionally, consider the expenses associated with your children's education, including tuition fees, books, and future college or university expenses.
  • Future financial goals: Think about your long-term financial goals for your family. This may include funding your children's higher education, providing an inheritance, or leaving a financial cushion for your spouse's retirement. Life insurance can help ensure that these aspirations are attainable even without your presence.
  • Funeral and final expenses: Account for the costs associated with your funeral, burial or cremation, and any outstanding medical bills. Having sufficient life insurance coverage can ease the financial burden on your family during a difficult time.

Easy application for life insurance for parents at Ethos

Because you’re busy taking care of your kids, we’ve streamlined our process to get you the coverage you need, when you need it, in as little time as possible (about 10 minutes).  

We also offer complimentary estate planning tools—a value of $898 per couple—on eligible policies (eligibility depends on state and carrier). These tools, including wills, trusts, power of attorney, and medical directives, help you create a comprehensive plan for your family's future should something happen to you. 

At Ethos, we are committed to supporting parents by making life insurance and estate planning easily accessible and efficient. We recognize that your time is precious and that your hands are full—many times literally—taking care of your family. 

How to apply for life insurance for parents

With our simplified application process, you can apply for same-day coverage here in just 10 minutes. There is no medical exam or blood test. Simply answer a few health questions online. 

Lastly, we’d like to leave you with what Greg F wrote about us on Trustpilot (Thanks Greg!): “Easiest process. Tried three different companies with each taking over a month and changing premiums and callbacks taking over a week. This process was quick and easy. I really wish I would have tried ETHOS first.”

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10 years
Please note that all prices quoted are subject to change, including due to underwriting.