How to Talk to Young Families About Life Insurance

Juanda Honore
Apr 14
3 min read

Life insurance might not be a hot topic around the dinner table, but for young families, it's one of the most important financial tools they can have. The challenge for financial professionals is helping young parents see life insurance not as a grim necessity, but as a smart, proactive decision that protects their dreams and their children’s futures.

Understanding the Mindset of Young Families

Young families often juggle multiple priorities—paying off student loans, buying homes, managing child care costs, and saving for the future. Many may feel financially stretched and view life insurance as something they can “get to later.” Others may not fully understand what life insurance covers or assume their employer-provided plan is enough.

Strategies for Starting the Conversation

1. Focus on Their "Why"Start by asking questions: "What would happen to your family if something happened to you?" or "What dreams do you have for your children’s future?" Make it about their goals, not just policies.

2. Use Real-Life ScenariosIllustrate how life insurance can protect against real risks—like covering a mortgage, maintaining household income, or ensuring children can go to college if the worst were to happen.

3. Talk in Terms of Protection, Not DeathFrame life insurance as a way to safeguard dreams. For example, "Life insurance ensures that your child’s future remains secure, no matter what happens."

4. Make It Simple and RelatableBreak down what policies do, how premiums work, and what kind of coverage might be appropriate. Avoid industry jargon.

Common Objections and How to Overcome Them

"I can’t afford it."Show how even a small policy can provide significant benefits. Use comparisons like "for the cost of two streaming services per month, you could get thousands of dollars in protection."

"I have coverage at work."Explain that employer policies are often limited, non-portable, and usually not enough for a family’s long-term needs.

"We’re healthy—we don’t need it now."Point out that now is the best time to get affordable rates due to age and health. Waiting may lead to higher premiums or being

uninsurable.

What Types of Coverage to Recommend

1. Term Life InsuranceAffordable and straightforward, term policies are ideal for covering needs during child-raising years, mortgage terms, or until retirement.

2. Permanent Life InsuranceThough more expensive, these policies offer lifelong protection and can build cash value. Useful for families with long-term wealth-building goals.

3. Riders for FlexibilityChild riders, disability waivers, or return-of-premium options can enhance flexibility and value.

How to Engage Both Partners

It’s crucial to include both parents in the discussion—even if one is the primary earner. Both contribute to the family, and losing either would have financial consequences. Encourage them to plan jointly and look at the overall impact on their household.

Educational Tools and Approaches

1. Visual Aids and Online CalculatorsUse calculators to show exactly how much coverage they need. Visuals make abstract numbers feel real and digestible.

2. Webinars and WorkshopsOffer events targeting young parents with topics like "Protecting Your Family’s Financial Future" or "Life Insurance 101 for New Parents."

3. Client StoriesShare anonymized stories of clients who benefited from coverage or regretted not having enough.

Positioning Yourself as a Trusted Advisor

You’re not just selling a product—you’re offering peace of mind. Make yourself available for ongoing support, updates, and questions. Emphasize a relationship over a transaction.