What is the ideal age to buy life insurance for parents?

The ideal age to buy life insurance for parents is as young as possible, typically in your 20s or 30s, when you are generally in good health and premiums are significantly lower. Buying early locks in lower rates for the long term.

How much life insurance does a stay-at-home parent need?

A stay-at-home parent needs substantial life insurance coverage, often comparable to an income-earning parent. Their policy should cover the cost of replacing their invaluable services, such as childcare, household management, and transportation, which can amount to hundreds of thousands of dollars over many years.

Can I get life insurance if I have pre-existing health conditions?

Yes, you can often get life insurance with pre-existing health conditions, but your premiums will likely be higher, or you might be offered a "rated" policy. It's crucial to be honest about your health history during the application process and to shop around with multiple insurers, as some may be more lenient than others.

What happens if I outlive my term life insurance policy?

If you outlive your term life insurance policy, the coverage simply ends, and no death benefit is paid. You will no longer pay premiums. You can then choose to purchase a new policy (at a higher premium due to your age), convert your existing term policy to a permanent one (if convertible), or go without coverage if your financial obligations have diminished.

Should both parents have life insurance, even if one doesn't work?

Yes, both parents should have life insurance, even if one doesn't work outside the home. The financial contribution of a stay-at-home parent is immense, and replacing their services (childcare, household management) would be a significant expense. Both policies ensure comprehensive protection for the family.

How often should I review my life insurance policy?

You should review your life insurance policy at least every 3-5 years, or whenever a major life event occurs, such as the birth of a child, buying a home, a significant salary change, marriage, or divorce. This ensures your coverage remains adequate for your evolving needs.

Is life insurance taxable for beneficiaries?

Generally, the death benefit from a life insurance policy is paid to beneficiaries income tax-free. However, if the policy is part of a larger estate and the estate is subject to estate taxes, or if the policy is transferred for value, there could be tax implications. It's always best to consult with a tax advisor regarding specific situations.

Life Insurance for Parents with Young Children | One…