Swings and roundabouts – the challenges of protecting your family
While preparing for raising a family, unpredictable events can be overlooked
As you leave the maternity ward knowing that a tiny baby is totally reliant on your care and attention, the life-changing experience of parenthood starts to kick in. Too often, it takes those turning points to remind us of how valuable being present really is. That’s why life insurance for new parents and other types of financial protection can be so important.
Tragic events can happen at the most unexpected times. And while nothing can make up for losing a loved one, the money from life insurance could help remove financial worry at a difficult time.
The cost of life insurance is usually lower if you take out the policy sooner than later. There is a wide range of protection products available today that could help protect you and your family. We've summarised some of these below:
Level life cover enables you to choose how much your family might receive and how long you want to be covered for.
You can also help protect the payout from inflation.
Decreasing life cover is a popular option with homeowners, offering a way to help cover a mortgage or other outstanding loans if you pass away during the policy term. This cover reduces over time, roughly in line with your repayment mortgage, so it usually costs less than level life cover.
Income protection cover pays you a proportion of your income every month if you’re unable work due to an injury or illness. You can decide how long to wait until payments begin, and the longer you delay, the less it costs you. This gives you some security that your monthly outgoings are covered so you can focus on getting better.
Critical illness cover pays out a lump sum if you're diagnosed with, or undergo surgery for, a critical illness that meets the policy definition during the policy term.
For these products, there is no cash-in value at any time.
Our Free Parent Life Cover can be thought of as baby steps while considering long-term life insurance options. This policy is free of charge, lasts 12 months and provides cover for £15,000 if the parent dies within the policy term. The policy is available to new parents and can be taken out before the 4th birthday of their child.
Children's critical illness and death benefit
With our Critical Illness Plan, children over 30 days old, up to the age of eighteen (or 21 if they're in full-time education) are also covered . If your child is diagnosed with an illness that meets our definitions, we'll pay either £25,000 or 50% of the cover amount (whichever is lower). This covers one claim per child. Children's death benefit pays a lump sum of £5,000 per child. There is no cash-in value at any time.
Next article
What is mortgage protection life insurance?
Mortgage protection insurance is a type of term life insurance. Find out more about how mortgage protection insurance works, and how it can help you here.
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