Family life insurance
Secure your family’s financial future
Level Term Life Insurance is a type of life cover policy where you secure a fixed amount of cover for a set period. As the sum assured remains level throughout the policy term, the payout amount will be the same no matter when the claim is made.
How family Life Cover could help
The payout from Life Insurance could help to cover some or all of your financial obligations if you were to suddenly pass away.
For example, a two-parent family with one child might have a combined annual income of £40,000 and monthly outgoings of £2,500.
If one parent took out a policy and passed away, their family could receive a payout of up to £750,000, enough to cover the household finances for some time.
The amount secured and the premiums you pay are up to you, making Life Insurance for low-income families a realistic option.
How much cover do I need?
The amount of Insurance to take out for your family depends on what costs they’d still need to pay if you weren’t around, and for how long. Think about expenses like:
- Mortgage payments
- Rent
- Home maintenance
- Travel and transport costs
- Childcare and education fees
- Food, clothing, and general living costs
Which type of cover is useful for families?
You and your partner could choose to have a joint Life Insurance policy together, or you could each take out a single policy. With a joint policy, the premiums are often lower, as only a single payout is made when one of the policyholders dies. Joint policies will also payout regardless of whichever policyholder dies first, giving you peace of mind.
With two individual policies, your family will receive a payout following the death of each policyholder, so could benefit twice. Your premiums are likely to be more expensive as you’re each paying for a policy.
What can my family use my life insurance payout for?
The person or people you choose to benefit from your Life Insurance policy can use the payout however they wish. Typically, it might be spent on things like:
- Mortgage repayments, or even clearing the mortgage entirely
- School or university fees for your children
- Funeral costs to give you a fitting send-off
- Replacing your income for day-today living expenses
Securing Life Insurance for family members means giving them the freedom to continue their way of life, in whatever way they need.
What’s the best type of Life Insurance policy for my family?
There’s no right or wrong type of cover for your family, insurance should be chosen based on their needs.
Take a look at what types of Life Insurance could work for you.
Level Term Insurance
Level term Life Insurance pays out an agreed sum if you die during the policy’s lifecycle. If you outlive the term, you can simply set up a new policy based on your new circumstances.
This type of cover offers your family protection by covering flat costs, such as the loss of your income.
Decreasing Term Insurance
Decreasing term Life Insurance pays out a sum which decreases over the lifecycle of the policy. Premiums on this type of policy could be lower than Level Term.
If your family would need to cover a mortgage or other debt which is paid off over time, this option could be the most helpful way to do it.
Critical Illness Cover
Adding Critical Illness Cover to your policy secures a payout if you’re diagnosed with a recognised critical condition.
This can be used to cover medical treatments, care costs, or any adaptations to homes and vehicles which would help protect your family’s quality of life.
Critical Illness Cover for children
You can also protect your children with Critical Illness cover just for them, letting you secure their standard of living by paying for medical costs or care.
Whether you have kids already, or plan to start a family during the term of your policy, Child Critical Illness Cover can help safeguard them.
