How Much Does Family Life Insurance Cost?

Family life insurance can make a massive difference in your family and/or loved one’s lives. Not only can it provide peace of mind, it could also help make sure your family is taken care of if you're no longer there. Life insurance in general doesn't have a set cost, instead, it depends on a range of factors which we'll discuss further in this article.

Why do you need family life insurance?

Nobody wants to see their family or loved ones put at risk. But without financial protection, your loved ones could find themselves vulnerable should anything happen to you. They may be unable to maintain their current lifestyle, cover daily living costs, or meet future financial expenses such as mortgage payments and your children's education costs.

Family life insurance can be ideal protection for people such as:

• New parents
   

• Families with older children
   

• Single parents
   

• Dual-income parents
   

• Stay-at-home parents
   

• Homeowners

How much is family life insurance?​

The cost of life insurance can depend on a number of factors, including:

• Age - the older you are when you apply, the more expensive your premiums are likely to be. Buying cover at a young age may help you save money in the long-run.
   

• Health - people with pre-existing medical conditions tend to pay higher premiums as they are deemed a higher risk to insure.

• Policy type - policies such as whole life insurance typically cost more per month than term life policies.
   

• Cover amount - the more cover you have, the higher your premiums are likely to be. See: How much life insurance do I need? more information.

• Policy term - Longer policy terms generally lead to higher premiums since the risk of a claim increases over time.
   

• Lifestyle choices - habits such as smoking can also lead to higher premiums.
   

• Occupation - jobs that are deemed high-risk could result in higher premiums as these professions carry greater risk.

Which life insurance is best for a family​?

Family life insurance isn't a specific type of policy but more a term used to describe various cover options used to protect families. Some of the main options can include:

Whole life insurance

Also known as 'life assurance', whole life insurance lasts for the rest of your life as long as you continue to pay your monthly premium. Because the payout is guaranteed, it's typically the most expensive type of cover. It's suitable for families who wish to have long-term cover, especially those with young children.

Level-term life insurance

Term life policies are designed to cover you for a set time. If you pass away during the term the policy pays out a cash lump, but if you outlive the term, the policy expires and no money is paid.

Level-term life insurance pays out a fixed sum, which stays the same throughout the term. Even as you get older, or develop health conditions, the payout amount won't be affected. It's usually cheaper than whole life insurance as a payout isn't guaranteed.

Decreasing term life insurance

Decreasing term life insurance is mainly designed to cover large loans or debts such as a repayment mortgage. The payout amount is tailored to your mortgage, decreasing in value as you make repayments over time. The aim is that if you die before your mortgage is repaid, your family and/or loved will have the support to cover repayments.

Joint life insurance

Ideal for spouses who share their family's finances, joint life insurance covers two people under one policy. It can pay out in two ways either after the first death in the couple or once both parties have died.

A joint policy may work out cheaper than buying two single policies as there is only one set of premiums to pay. It can also be easier to manage and keep track of.

Critical illness insurance

Another type of protection, critical illness insurance doesn't cover death, instead, it pays out if you are diagnosed with a serious illness. This can include heart attacks, strokes and certain types of cancer.

After a claim is made you will receive a cash lump sum which can be used to cover your loved ones’ living costs whilst you are unable to work.

Do I need life insurance if I have no family​?

It might not make sense to get family life insurance if you don't have a family or loved ones, however, there may come a point where you need it later on.

If you buy a policy when you are young, it may be cheaper than if you wait until you're married or have kids. Plus, you can always change your policy and add cover if needed.

In addition to this, if you have loved ones outside of your family to protect, this type of cover might still make sense for you.

How to get affordable life insurance for your family​

You can save money on life insurance in a few ways, such as:

1. Buying cover early on when premiums are at their lowest.
    
2. Opting for term life insurance as it can be a cheaper alternative to whole life cover.
    
3. Quit smoking - which can significantly increase your premiums.
    
4. Maintaining a healthy lifestyle - which could help lower the risk of developing health conditions.
    
5. Getting a joint policy as opposed to taking out separate cover.

If you're looking for cheaper premiums, why not apply for life cover through Cavendish Online? We aim to provide customers with the lowest possible premiums for life insurance and other protection products from many of the UK’s top life insurers. Apply for a quote online to get started.

If you need advice or are unsure which policy is suitable for you, call our friendly advisers for guidance.