Life insurance for new parents
Becoming a parent for the first time is exciting, unpredictable and life-changing. Alongside the sleepless nights and unforgettable milestones comes a new sense of responsibility. Whether you're thinking about how to provide for your child today or protect their future tomorrow, it's natural to want reassurance that your family would be financially secure if the unexpected happened.
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Raising children is hugely rewarding. But there’s no doubt that parenthood comes with financial strings attached. Could your loved ones manage financially without you? If the answer is no, a life insurance policy could provide invaluable peace of mind. Cover starts from as little as £5 a month.
Below are just some of the expenses that a life insurance policy can cover:
- Mortgage, rent and bills – life insurance could help your loved ones continue living in the home they've built their lives in. Following a valid claim, the cash sum paid out could be used towards mortgage payments, rent or household bills.
- Education costs – from nursery and school fees to funding university. A life insurance payout can support your children's future and the milestones still to come.
- Hobbies – your life cover could help protect the activities your children enjoy, from swimming lessons to horse riding.
- Looking after the kids – raising children takes time, energy and money. Life insurance for parents can provide reassurance that, following a valid claim, a cash sum could be used towards childcare and everyday living expenses, helping your family maintain stability at a difficult time.
Not sure how much life insurance cover a growing family needs? Our Life Insurance Calculator can help you estimate the amount of cover that could help protect your loved ones.
If you're pregnant and expecting your first or second baby, be assured that applying for life insurance will be no different than at any other time. Your premiums will be unaffected by your pregnancy. For more information, read our guide on life insurance when you’re pregnant.
A new baby means you’ll have greater financial responsibilities. From childcare costs to clothes and nappies, there's a lot to pay for. So you might want to review the life insurance you already have. Is there still enough protection in place now that your family is growing? On the plus side, you may be able to increase your existing cover after your baby’s birth or legal adoption. You can check your policy documents to see if this is an option. Time limits and terms & conditions apply. Find out more about making changes to your life insurance policy.
For many new parents, life insurance becomes an important consideration when a child arrives. As your family grows, so do your financial responsibilities, from mortgage payments and household bills to childcare and everyday living costs. Life insurance for new parents can help provide reassurance that your loved ones could have financial support if the unexpected happened, helping them maintain stability at what would already be a difficult time.
Because every family is different, the right cover will depend on your circumstances and the financial protection you want to put in place.
There are several options to consider:
- Life Insurance – This type of policy can help minimise the financial impact that your death could have on your loved ones. It could pay out a cash sum to help towards the mortgage or help with everyday living expenses. The cost and the amount of cover you choose remain the same, unless you alter your policy.
- Decreasing Life Insurance – Designed to help protect a repayment mortgage, the amount of cover reduces roughly in line with the way a repayment mortgage decreases. This can provide reassurance that your family could pay off the mortgage, helping them remain in the home they know and love.
- Critical Illness Cover – Can help minimise the financial impact on you and your family if you’re diagnosed with a condition or undergo a medical procedure coverd by the policy. It can be added for an extra cost when you take out Life Insurance or Decreasing Life Insurance. If you do take out Critical Illness Cover, Children’s Critical Illness Cover is automatically included.
Please remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
When you're adjusting to the cost of nappies, childcare and everything else that comes with raising a child, it's understandable to wonder whether life insurance will fit into the family budget.
The good news is that life insurance can be more affordable than many people think. Taking out cover sooner rather than later may also help you secure lower premiums than if you wait until you're older.
When should parents get life insurance?
There are certain milestone moments when people tend to buy life insurance. Having children is one of them. It's worth including on a things before having a baby to do list. 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.
Life insurance provides peace of mind that you can financially protect your young family if you die during the length of your policy. As well as the financial impact of losing a parent, who would care for your children without you? Appointing a legal guardian means you (and anyone else with parental responsibility) decide.
What is the average cost of having a child?
Understanding the financial commitment of raising a child can help you decide how much life insurance cover your family may need. According to research conducted by Child Poverty Action Group in 2025, the cost of raising a child to age 18 is £250,000 for couples, and £290,000 for a lone parent.
The cost of parenthood – in numbers
There are many everyday costs of raising children, from food and toys to fun outings. Below we’ve compiled some of the fixed childcare costs that a life insurance payout could be put towards.
- Nursery: Due to new childcare entitlements in England, there is now a significant difference in the average cost of childcare for children aged three and under between England and the other GB nations. According to Coram’s Childcare Survey in 2025, an average part-time nursery place (25 hours a week) for a child under 2 in England costs £70.51, in Scotland the same costs £122.38 and in Wales it costs £155.04.
- Holiday clubs: Coram’s 2025 Holiday Childcare Survey found that parents are paying on average £179 per week on holiday clubs, that’s £1,070 for the six-week break.
- School fees: If you choose to educate your child privately, according to Statista the 2026 average cost of one year at private school was £18,678.
- School trips: According to research conducted by Zurich in 2025, the average cost of a residential trip cost £412, with a day trip costing £30 on average.
- School uniforms: According to the Department of Education it costs £442 to fully kit out a child for secondary school and £343 for primary school pupils.
- Birthday parties: Oxygen Activeplay’s 2024 survey revealed that the average cost of a child’s birthday party was £524.
Types of life insurance for new parents
The cost of life insurance for new parents is personalised. You'll need to tell us what cover you need and how long for. We'll also ask some details about you such as your age, health, lifestyle, and whether you smoke.
If you're in a relationship, you may also be considering whether you need a joint life insurance policy or two single policies. Read our joint life insurance vs single life insurance for more information.
Not sure how much cover you need? With life insurance starting from just £5 a month, our Life Insurance Calculator can help you estimate the amount of cover that's right for you.
Learn more about life insurance for your family
Having a baby is one of life’s great adventures. But when it comes to protecting your loved ones, some things in life are simply too important to leave to chance. Discover how our Life Cover products can help protect those you care about.
