As parents, none of us want to think about dying and leaving our children behind without our love and support. Whilst our emotional and physical presence can never be replaced, knowing that your family is financially secure when you’re gone can take some of the pressure off.
Life insurance can ensure that if the worst happened, your children would be able to stay in the family home and remain unburdened from paying off any existing debt you may have incurred. But scarily, only 27% of first-time parents in the UK have life insurance, according to Aviva.
Why aren’t more parents covered?
Many parents, myself included, don’t want to think about what life would be like if they died. We all know it’s inevitable, but many of us fail to prepare financially. Making sure that adequate future provisions are put in place now, can help reduce the financial burden during a difficult time.
We all know that looking after your family can be expensive, especially with the rise in living costs. Life insurance doesn’t have to be expensive or complicated. Do It For Them is one provider that offers cover from as little as £3.99*[1] a month, with no annual price rise and a 30 day money back guarantee if you feel like the cover isn’t for you.
Do It For Them offers easy to sort life insurance with no phone calls. Their main aim is to make the whole process simple, easy, with no phone calls or data captured (meaning you don’t need to give personal details). They offer a fully online service which can cover you and your family quickly and easily with an instant decision given to you online. Do It For Them is backed by Legal and General Life which is a trusted and well-known UK brand who pay out 96% of personal protection claims.
What can life insurance cover?
The type of life insurance you choose will depend on your family needs. Usually, a policy will cover:
- The remainder of the mortgage
- Daily living expenses
- The children’s education
- Your funeral and legal costs
- Repayment of any outstanding debts
- An inheritance for your children
Does Life Insurance cover critical illness?
Terminal illness cover is an addition which can be included within your life insurance policy with Do It For Them. If you are diagnosed with a specific illness or are given 12 months to live, you can receive an early pay out.
Whilst this can be used to cover expensive medical bills or to carry out necessary adaptations to the family home, it can also be used to enjoy the remaining time as a full family – final holidays and building lasting memories for your children.
The different types of life insurance:
Some will be more suitable than others depending on what you are looking to cover and pay-out. The most common ones are:
- Level term life insurance – A fixed lump sum is paid out upon your death, if you pass during the policy term
- Decreasing life insurance, – A cash lump sum is paid if you pass during the policy term, but the value of the pay-out decreases over time. This is often used to protect your repayment mortgage.
- Increasing cover life insurance – You have the option to increase your monthly cover based on Inflation, on each policy anniversary you have, with no further questions about your health.
It is possible, budget permitting, to take out multiple policies simultaneously. For example, you could have a decreasing life insurance policy on your home which pays out if you die or become seriously ill before your mortgage is paid off. Then a family income benefit that pays your family a monthly income to help cover the daily costs and your lost income.
Can stay-at-home parents get life insurance?
It is often assumed that stay-at-home parents do not require life insurance as their death will not result in any loss of income. However, this couldn’t be further from the truth.
Whilst a stay-at-home parent may not bring any tangible earnings into the household, their death could result in an inadvertent financial loss. For example, if a stay-at-home parent died it is likely the remaining parent would need to either reduce their working hours or fund additional childcare, both of which would result in less disposable income.
Covering both parents ensures this financial loss isn’t experienced as the pay-out can be used to cover these costs.
Why every parent should have life insurance:
Life insurance can secure the future financial stability of your family: this means that even though your family would be devasted without you, they wouldn’t have the added pressure of worrying about money as well. Plus, Life insurance can be affordable: Do It For Them offers policies from as little as £3.99*[2] a month with no hassle and an instant decision online. This means that you and your family could be covered if the very worst happens.
Policies can be taken out simultaneously to allow for different types of cover: Taking cover out while you’re young makes your premiums cheaper. By planning now, you could pay less over your lifetime. Don’t worry if you feel like you don’t fit into a certain box. None of us do. Think about what life could be like without you and plan from there.
I hope this helps you to understand what life insurance is and why it is important, as a parent to have it. We think of it as our little safety net. We hope we never need it but know that we will one day and that it will be there to protect our family.
Disclosure – this post is sponsored by Do It For Them life insurance to encourage more parents to take control of their personal finance to protect their family’s futures. My review of the process is my own and my opinion of the ease of using the website is also my own. The policy is one I have taken out myself as a genuine customer.
[1] Quote based on a non-smoker DOB 30/11/1993 over 20 year term, cover amount 149,662
[2] Quote based on a non-smoker DOB 30/11/1993 over 20 year term, cover amount 149,662