Who sorts the life insurance in your household?

Mums. Dads. Parents. Anyone. Who sorts the life insurance in your household?

For years gone by, instead of both parents getting a life insurance policy, it’s typical to see just the breadwinner taking out a policy to protect the family.

But why not both? Let’s look into the myths, facts, and questions surrounding parents and life insurance. 

The pay gap and life insurance

With the gender pay gap still sadly alive and well, with the UK average standing at a staggering 14.9% difference, it’s in most women’s best interests to sort out cover for themselves.

According to recent research by Legal and General, in the event of a complete loss of income, they found it would take 14 days on average for working women to be able to meet household costs before reaching the breadline.

Whereas, the average working man would be able to meet these costs for 28 days, and the average household would be able to meet costs for 19 days. This data supports the clear gap between men and women’s financial situations in general.

How income protection could make all the difference

The policy that protects your income, also known as sick pay insurance, income protection is one of the most important life insurance policies you can get.

It can cover up to 60% of your monthly income, meaning that you can still pay for the essentials, whilst you’re off work.

If you’re both working parents, ensuring you both have an income protection policy to cover your respective incomes is crucial, especially if you’re earning different amounts of money.

Why parents shouldn’t go without

As a parent, you have people who are financially dependent on you. So being without cover could have detrimental effects on your family, if the worst were to happen. New research by MoneySuperMarket found that 36% of adults with dependants do not have any type of life insurance in place.

One of the main reasons people put off life insurance is because of the cost. But it might be as expensive as you think!

According to the Office of National Statistics, the average age of a mother in the UK is 30.7 years, whilst the average age for a father is 33.7 years. So, for example, by securing your policy at the age of 32, it could cost you just £11.21 a month to get £200,000 of cover.

Sharing the load

If you're a parent and part of a couple, the idea of a joint life insurance policy might seem attractive. But it's worth considering individual policies. They can offer more security and peace of mind.

Joint policies cover both partners. If one partner sadly passes away, the policy pays out to help the survivor with living expenses.

But if tragedy strikes and you claim on a joint policy, you'll receive necessary financial support. Yet without an additional policy, you'll lack cover for the future. Individual policies ensure that if something happens to your partner, your own policy remains intact, providing an additional safety net.


Helpful tips for parents

Here are just a few of our top tips for parents considering life insurance:

• Sorting your life insurance out when you’re younger has so many benefits. You’ll be covered for longer, which means that you’ll have more peace of mind, and that’s always a bonus!


  
  
• There are several different types of critical illness policies which also include children’s cover at no added cost. Which means you and your children could be covered.
  
  
• Always seek advice from life insurance experts, they may recommend products that you didn’t know you needed.
  
  
• The more cover the better - if it fits within your affordability, more than one policy could be a great idea.

If you’re not sure about the price

Not ready to commit to life insurance yet because of the price? With our life insurance calculator, you can see an estimate of costs in as little as 30 seconds.

All you need to do is pop in your age, how much cover you think you’d need, and whether or not you’d want a decreasing term or level term.

In case you didn’t know - a decreasing term is typically used to cover your mortgage, and a level term can provide a lump sum if the policyholder were to pass away.

Why should the responsibility be shared?

It’s simple. The more protection, the better.

With both of you covered, you’ll have double the peace of mind that your loved ones would be okay, if the worst were to happen.

We can help

If you’ve still not sorted your life insurance - we can help.

Our team of experienced life insurance experts are ready to help you find the right cover. So whether you’re a parent, or even if you don’t have any dependents - we have someone who can help you.