Guide For Parents
Life insurance for parents is more important then you might think…
At one point or another, you will have heard about life insurance. On paper, it’s a necessary idea, but in practice – it often sits on your ‘to do list’ which you never get round to doing.
As a Parent – especially for those who are new parents – budget is going to be a factor.
The cost of raising a child is expensive! On average, a single child costs over £8,000 a year. Add in siblings, and this cost can become mountainous quickly.
Looking to get life insurance can seem like a luxury expense. But the truth is, life insurance is important – especially for parents.
Who will look after your kids if you pass away? Would it fair to leave them without any financial support?
Taking out life insurance is the number one way you can look after your family, and make sure that they get the required care and monetary support they need.
Modern life is difficult, but we can help you make it that little bit easier.
What is Life Insurance?
Life insurance is a contract in which your family is guaranteed a payout should something happen to you. By paying a regular premium, you can maintain a consistent level of security while resting easy in the knowledge that your family is prepared should the worst come to pass.
There are a large number of personalisation’s you can make to your life insurance plan in order to make sure it fits your situation perfectly. The ideal plan can vary a lot depending on a number of personal factors. Life insurance isn’t a one-size-fits-all, so it’s important that you find a plan that works for you and your family’s needs.
Life insurance can also cover things such as funeral costs, so that your family isn’t left with any impossible decisions or undue stress in what would already be an incredibly stressful time.
What factors should influence my decision?
When you become a parent, there are people in your life who are more important than yourself. Your children are dependent on you in several ways. When it comes to life insurance, you can ensure your children are supported financially, even after your death.
There are so many costs in life – all of which might become overwhelming for your partner and children, were you to die. This can include:
- Mortgage payments
- Childcare fees
- Living costs
- Funeral costs
- Personal debt
- Therapy (often overlooked)
What kinds of life insurance are available with Four Leaf Cover?
At Four Leaf Cover, there are different options available to you, depending on your needs. You can choose from Family Income Benefit and Mortgage Protection. These two policies aim to help your family with some of the greatest burdens.
Mortgage Protection Insurance helps your family deal with the cost of mortgage repayment. There are two options depending on if your family’s mortgage is an interest-only mortgage or a repayment mortgage. Four Leaf Cover’s mortgage insurance policies are flexible, with the understanding that your circumstances can change over time and your cover should be able to adapt to your changes.
On the other hand, Family Income Benefit helps your family financially after your death with living costs. This policy provides a tax-free monthly income for your family. If this doesn’t suit your needs, there is an option to deliver a level-term lump sum payout.
Think about life insurance if you are a parent.
Life insurance should be a priority for parents. Protecting your family is your number one priority as a parent; why not ensure this continues after your death.
Family Income Benefit
- A tax-free monthly income for your loved ones
- Provide an ongoing income for your family
- A way of ensuring funds aren’t spent all at once
FAMILY INCOME BENEFIT
Family Income Benefit (FIB) provides a tax-free monthly income for your loved ones if you pass away during the time you’re insured. It’s great to cover the repayment mortgage with a decreasing policy or interest-only mortgage with a level policy but the question people sometimes fail to consider is ‘how are your loved ones going to afford monthly bills for the home?’
Every 23 minutes a child loses a parent in the UK. Raising children is rewarding but challenging, this challenge will double if one parent were no longer around.
Family Income Benefit is a great way of reducing the financial pressure incurred from the cost of raising children in your absence.
Some people choose a lump sum level term payout to protect the family.
Our advisers can guide you on which option is better suited to your circumstances. If you’re in retirement and you pass away, the monthly pension could be halved. Family Income Benefit may be used to top up your surviving spouse’s monthly pension to its former amount, easing the burden on your partner.