Life Insurance Tips For New Parents

Becoming a parent is an important time to consider life insurance, or to assess whether your existing cover is sufficient.

When you have children, the financial consequences of one parent dying are likely to be severe. Indeed, the cost of raising a child in the UK stacks up to a whopping £230,000.

That’s why setting up a life insurance policy should be near the top of prospective or new parents’ to-do lists.

Costs for new parents to consider;

• Mortgage: As the main expense of most households, it’s worth re-evaluating whether you’ve enough protection in place to cover repayments.

• Childcare: You’re not only providing financial support but also carrying out unpaid responsibilities looking after your child. Your partner could be left with expensive childcare costs should you die.
• Education: Whether it’s school fees, uniforms, and sports kits, or university tuition fees, you may want to ensure your offspring’s costs are covered.

• Loans and savings: There may be other loans or credit cards which you don’t want to leave your loved ones to pay off. You may also want to ensure regular payments into your child’s savings or trust fund are kept up.

• General costs: Food, nappies, utilities, clothing…Things still need to be paid for to help the family maintain its current lifestyle.

A life insurance policy would be able to pay out a lump sum to the surviving spouse if a family breadwinner were to die. In many cases, for example, this could make the difference between being able to stay in the family home, and having to sell up and move to cheaper accommodation.