Losing a member of your family at any stage in life can be devastating, particularly when children are involved.
Family life brings responsibilities such as ensuring your dependants are provided for in case you die, particularly if you have a mortgage or other debts. When you have young children there are additional practical and emotional problems connected to the loss of a parent. In addition to dealing with grief, the financial pressures of raising a family on just one wage can be overwhelming. The death of a non-working partner has its own financial impact, such as childcare provision.
No need to be complicated
Different types of protection policies are available but a simple level-term policy, where a pre-decided lump sum is paid out should you die within a stated period, is among the simplest to arrange and is typically very cost-effective. The amount payable on death (sum assured) should be enough to cover any outstanding debts, including mortgage, regular outgoings, potential university fees and so on. The period of cover (term) should reflect the needs of your dependants – children will probably need support until they finish education and a partner may need it until pensionable age.
Joint or single cover?
A joint policy will cover yourself and your partner, paying out on the first death within the term. Alternatively, you can have separate single-life policies, which can be a bit more expensive but means there could potentially be two pay outs. A young, fit individual should be able to easily find affordable life cover. Premiums with rise with age, health, lifestyle choices such as smoking and other factors that affect your life expectancy. Your adviser can help find a suitable policy for your circumstances as long as you are open about your lifestyle, especially if you have existing medical issues.
Keep under regular review
A review with your adviser will help to ensure that you have the right cover in place for your financial circumstances, giving you the peace of mind that you’ve got things covered.
As with all insurance policies, conditions and exclusions will apply
Your home may be repossessed if you do not keep up repayments on your mortgage