The loss of a loved one is enough for anyone to cope with without the added burden of financial difficulties too. Life cover can help make sure those left behind don’t lose the stability and familiarity of daily life. All the things that could make loss easier to bear. Should one parent die, the other is entitled to a sum of money. Should both parents die, your appointed guardians are entitled to a sum of money for the benefit of your children.
Life insurance or life assurance is a cover that provides your loved ones with financial stability if you die during the term of your policy.
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
There are certain milestones when people should consider taking out life insurance and having a newborn baby is one of them. That’s because life insurance helps you protect those who rely on your income – whether that’s a partner or a new baby. Understandably, it’s hard to imagine not being around for your children but getting life insurance can financially protect your family if you die during the term of your policy.
The options are to have a lump sum payment in the event one or both parents should pass away. Alternatively, you could consider receiving a monthly income paid until your children are financially independent. You are also able to include critical illness cover as a tax-free benefit.
Knowing the costs associated with raising a child can help you work out the amount of life cover you need. According to the 2020 Cost of a Child report from the Child Poverty Action Group, the basic cost of having a baby who eventually turns 18 is £71,611 for couples and £97,862 for lone parents. If you add housing, council tax and childcare expenditure, the amount it costs to raise a child rises to £152,747 for couples and £185,413 for lone parents.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors