Life Insurance & the family

Most families are primarily dependent on the continued life and earning ability of the husband and father. The greatest need, therefore, is for the insurance on his life, since the greatest financial loss would result from his death. Not only that, the death of a child means expenses, often in amounts which place a decided burden on the family. Life insurance on the life of the wife & mother is justified for the same reason.

Because the husband’s continued life & health are essential to the average family’s welfare, his loss of life or health constitutes the greatest economic hazard. His death while children are small may leave debts and eliminate the main source of the family’s income. His disability over a long period of time adds the expenses of his own medical care. Retirement, too, brings a loss or serious reduction of income in most instance.

Life Insurance provides a ready and effective means of meeting the needs of a family at the death of a husband, and it may often be utilized to help meet retirement needs when family responsibilities have less. However, life insurance is bought and paid for out of current income, and all too often the period of greatest family need coincides with the period of lowest income. For this reason, many different insurance plans have been devised in an attempt to meet maximum insurance needs of the family during periods of limited income.

Some good family insurance plans

1. Term insurance, a special insurance for family provides the maximum of funds for any given outlay. Furthermore, term life insurance provides a very satisfactory solution if the need happens to be temporary.
2. Combination Plan, a family income life insurance plan which pays a fixed amount of life insurance and a monthly income to the beneficiary, if the insured dies within a stipulated period of time. The fixed amount is usually whole life insurance and thus is payable whenever the insured dies. The monthly income is provided by term insurance, for the insured’s death must occur within the period specified or the income will not be payable. If the insured does die within this period, however, the income begins at the date of death and continues until the end of the period. For this reason many companies make the family income plan available as an integrated policy. Also many companies provide the income payments by a separate rider which can be attached to and made a part of any permanent life insurance plan.
3. Monthly Income, this is usually available in amounts which bear a percentage relationship to the basic coverage, but there is no uniformity in this respect and often the amounts permitted vary with the length of the period involved.