As a parent, you understand the importance of protecting your family financially. You may not have considered buying life insurance, but it's a good option for protecting your loved ones in the event of tragedy.

Being a parent means that you make decisions every day with the well-being of your family in mind. However, what happens if something were to happen to you? How will your family cope financially? Taking out life insurance can be one way of protecting your loved ones in such an event.

From understanding cover types to comparing providers & costs, it pays for mums to shop around for the right policy. We'll explore the key aspects for parents looking to buy life cover, so you can make an informed decision when buying a policy.

Do parents need life insurance?

To be a parent is an amazing experience – but it can also involve financial planning that you're not used to. No parent wants to think about leaving their family behind. Parents today have a lot on their plate - from working full-time, raising kids, taking care of a house, it’s a lot.

Many parents might not be aware of how effective life insurance can be. It can provide a financial safety net to help secure their family’s wellbeing in case anything happens to them.

Single parents may also benefit from life insurance, as they may be solely responsible for providing for their children. Life insurance can help cover costs such as childcare, education and medical expenses, so that your children don't have to go without these essential items.

Raising a child can be expensive, from buying food and clothes to paying for medical care. Having cover can give you peace of mind, knowing that your family has financial support if anything happens to you.

What type of life insurance cover do parents need?

Term life insurance

For parents paying a mortgage, the most common type of cover is term life insurance. This type of policy pays out a lump sum if the policyholder dies during the term of the policy. The money can be used to help pay off outstanding mortgage debt, ensuring that your loved ones will not have to worry about it in the future.

There are 3 types of term life cover:

  • Level term - This type of policy pays out the same amount regardless of when you die during the term. Your premiums for this kind of policy are fixed.
  • Decreasing term - The policy is usually taken out alongside a large loan or mortgage. The payout decreases over time, in line with a mortgage or loan. Your premiums for this policy are fixed, but start off cheaper than level term life insurance.
  • Increasing term - The payout increases over time, usually in line with inflation. This way, the payout your children receive won't lose value. This option is also referred to as indexation or index-liking. It’s important to note that you should expect your premiums to increase with inflation as well.

Please note: the insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

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Whole life insurance

Another option for parents is whole life insurance. This type of policy pays out a lump sum when you die, regardless of when that happens. It’s designed to provide financial security for your family if you die at any point in the future.

Whole-of-life policies tend to be more expensive than term life policies, but they offer greater peace of mind for the long term.

Please note: the insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit.

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Joint life insurance

A joint life insurance policy is shared between two people - usually couples. It pays out a lump sum when one or both of the policyholders dies.

This type of policy can be useful for parents who are married or in a long-term relationship, as it can provide financial security for both partners and their children. It's often seen as a cheaper option when compared to taking out separate policies.

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How much cover do parents need?

When it comes to life insurance, the amount of cover you need will depend on your individual circumstances. Generally speaking, those with dependants should aim to have enough cover to pay off any outstanding debts, funeral costs, and costs of living.

It’s important to review your life insurance policy regularly, as your needs may change over time. For example, if you move house or take out a loan, you may need to increase the amount of cover you have in place.

It's important to consider all your financial commitments when deciding how much cover you need. This includes mortgages, loans, credit cards and any other debts you may have. You should also think about any future expenses, such as childcare or education costs.

Ultimately, the amount of cover you need will depend on your individual circumstances and financial commitments. It’s important to shop around for the best deal and make sure that you get the right level of cover for your needs.

How much does life insurance cost?

The cost of life insurance cover varies depending on the type of policy you choose and the amount of cover you need. Generally speaking, term life policies tend to be cheaper than whole-of-life policies.

Other factors include:

  • Age - Generally, the older you are, the more expensive the policy will be.
  • Health - If you have any pre-existing medical conditions, this could affect the cost of your policy. 
  • Smoking - Smokers tend to pay more for life insurance than non-smokers.
  • Occupation - Your occupation can also affect the cost of your policy, as some jobs are seen as higher risk than others.
  • Amount of cover - The more cover you need, the more expensive the policy will be.

It’s important to shop around and compare different policies to find the best deal for you. It's also a good idea to speak to an insurance broker, who can help you find the right policy for your needs.

How to apply for cover

Applying for life insurance cover through Cavendish Online is as easy as it gets.

If you’re happy to look into quotes without advice, you can simply to fill out our online application form and provide some personal information, such as your age, occupation and medical history. Once you've submitted your application, we'll show quotes from leading providers for you to compare in a matter of minutes.

Alternatively, you can apply with advice by speaking to one of our expert life insurance advisers. They'll help you find the right type of cover based on your circumstances and budget.

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Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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