Asked by Chrisitna  |  Submitted December 10, 2015

Can I get a plan to cover my whole family?

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  Answers  |  1

December 10, 2015

Hello Christina,

You can get life insurance that covers your whole family, but there are some things to consider. First, some life insurance carriers (on their applications) will make no provision for adding all family members. American General, for instance, has fields for adding children but not a spouse. Others may allow a second insured person on the life application, but often you will find that the spouse’s coverage will be limited in some way and will not be the same as the primary insured’s coverage. That may not be a big issue for some, but it may be for others. Then there is this: if my wife and I are on the same policy and I die, the contract comes to an end - which means that my wife’s coverage also comes to an end since it exists as a rider on my policy. At that point, she would have to obtain new coverage since our 16 kids still have needs.

My wife and I have separate policies. We do it that way for several reasons (to include those mentioned) but also because we have different needs that determine the type, length, and face amount of coverage. For instance, if I make twice as much as she does, my death benefit would be larger than hers since the benefit is there to replace a larger amount of income. Individual needs may lead to separating the coverage to fit those needs.

Lastly, you may find that while shopping for the best price for coverage, the carrier that can accommodate the “whole family on one plan” approach is also not the one that has the most competitive pricing. Summing it up, you can see that it is possible to put them all on one plan, but it makes practical sense only if the limitations are not problematic for you.

Kirby Thomas

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