Life insurance for new parents
Becoming a parent for the first time is exciting, unpredictable, and of course, a little daunting. Parenthood comes with important financial responsibilities, so if you’re not already covered, read our guide to life insurance for new parents.
When should parents get life insurance?
There are certain milestone moments when people tend to buy life insurance, and having children 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 length of your policy.
If you are worried about finding the time after your new arrival takes up all of your spare time, it may interest you to know that it is possible to get life insurance when you’re pregnant and your premiums will be unaffected by your pregnancy.
The importance of life insurance for parents
As a parent you’ll face plenty of ongoing costs that your loved ones might not be able to cover without you:
- Mortgage, rent and bills – your life insurance could mean your loved ones will still have a roof over their heads if you’re no longer around.
- Education costs – from nursery and school fees to funding university, a life insurance payout can support your children as they grow up.
- Hobbies – your life cover can protect any funds that support your children’s favourite pastimes, from swimming to horse riding.
- Looking after the kids – as every parent knows, raising children is practically a full-time job on its own. Being a stay-at-home parent takes time, energy and money, and life insurance for parents is not just for the breadwinner.
Life insurance for young parents
If you’ve just had a baby, first of all – congratulations! We know you’ll have lots of practicalities to think about, but to make life easier, here's a list of the options we offer:
- Life Insurance – is a type of policy that can help minimise the financial impact that your death could have on your loved ones. It could pay out a cash sum that could help towards the mortgage or help with everyday living expenses. The premiums 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, so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
- Critical Illness Cover – can help minimise the financial impact on you and your family if you’re diagnosed with a specified critical illness. It can be added for an extra cost when you take out Life Insurance or Decreasing Life Insurance.
Please remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
How much does life insurance cost?
The cost of life insurance for new parents depends on many variables, such as the amount of cover you need and your policy length, as well as your age, health, lifestyle, and whether you smoke. You can also make savings if you pay your premiums annually rather than every month.
If you're in a relationship, you may also be considering whether you need a joint life insurance policy or two single policies. Joint life insurance can be cheaper, but these policies only pay out once if the first person dies during the length of the policy, so you will need to consider the implications if your surviving partner is left without cover. Read our joint life insurance vs single life insurance for more information.
Some things in life are too important to leave to chance. Discover how our life cover products can help protect those you care about.