Family life insurance can provide financial stability, making sure your loved ones can keep up with important bills and living costs without you.Start a Free Quote
Life insurance can provide financial stability for your family, should the worst happen to you. It is a simple way of protecting your loved ones and making sure they could keep up with important bills and living costs, if you were no longer around. There are a number of options, depending on what sort of cover you are looking for.
Over 23,600 parents with children under the age of 18 pass away every year in the UK. Family life insurance could provide a safety net to protect your family’s future and safeguard the family home.
In this section, we’ll look at:
· Family Term life insurance
· Family Whole of Life insurance
· Family Income Benefit
As your family grows, it’s natural to want to protect them from the worst scenarios. Life insurance is a simple way to achieve this, although family life insurance isn’t actually offered as a policy. The best way to understand it is taking out life insurance for your family’s financial security.
There are different types of family life insurance, each suited to protecting certain aspects of your life. It’s important to understand your options before making any decisions.
Term life insurance for families is a very popular choice, and often the most common form of family life insurance. This will provide cover for a fixed period of time, with a set pay-out amount if you pass away during that time.
You can choose from Level Term life insurance or Decreasing Term life insurance for your family. Level Term will offer a fixed lump sum, while Decreasing Term will provide a pay-out that reduces over the course of the policy. This means the latter would be better suited to financial commitments like a repayment mortgage.
Whole of Life insurance guarantees a pay-out and will cover you for the rest of your life. For that reason, it can be more expensive than other types of policies. It will pay out a lump sum to your loved ones, and can be used towards the mortgage or other financial commitments.
It’s important to note that Whole of Life insurance for families are typically better suited for those who are older. If you take this type of cover out when you are young, it’s possible to pay more in than it will pay out. However, Whole of Life will guarantee a pay-out no matter when you pass away.
Family Income Benefit differs from the traditional life insurance policies, as this kind of cover will provide monthly payments instead of a lump sum. Family Income Benefit can help with replacing a lost income, covering everyday living costs.
Family Income Benefit can be particularly helpful for family budgeting. When taking this type of policy out, you can decide on the amount your loved ones will receive and how long the payments should last. If you passed away during the term, your family will receive monthly pay-outs until the policy ends.
It can be particularly helpful if you are a young family, as it can provide help until your children can financially support themselves.
If you take out Critical Illness cover, you can protect your family from any loss of income while you recover or undergo medical treatment. If you are diagnosed with a critical illness that meets the policy definition, you may receive a lump sum.
In most cases, Critical Illness cover will also include your children for a specific list of conditions.
** Premiums and payout based on a healthy non-smoker who is an office worker and doesn't have a hazardous lifestyle up to the age of 65. The premium shown is based on Aviva's Income Protection + Plan and is subject to a full underwriting process. Prices are correct as of January 2022.
This calculator is for informative purposes only and is not to be taken as financial advice, for accurate financial advice please consult with an advisor from Caspian Insurance.