Becoming a parent or guardian is one of life's most rewarding experiences, but it also comes with a great deal of responsibility. One key duty for new parents or guardians is making sure their family or loved ones are financially protected against unexpected events. This is where life insurance cover comes in.
Many new parents or guardians may think they don't need life insurance because they're young and healthy, but that's not the case. It could provide a financial safety net for your family and/or loved ones if the unthinkable happens. We'll look at the key reasons why new parents and guardians should consider life insurance.
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.
To lock in lower premiums
Life insurance premiums are typically based on age and health. So getting cover early could allow you to take advantage of low rates. If you wait until you're older or have a pre-existing condition, your premiums could be much higher.
For example, whole life insurance has fixed premiums* that remain the same throughout the life of the policy. Therefore, it's important to get cover when you are younger, so you can lock in lower premiums.
With this kind of plan it is sometimes possible to pay in more than the sum assured is worth, so be sure to chat to an adviser before purchasing to ensure it is the right plan for you.
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*premiums are typically fixed unless you choose an increasing policy.
If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have a scheme that allows you to keep the cover.
To cover debts and expenses
Another reason to get to covered is to protect any debts or expenses you may leave behind. This could include any mortgages, credit card debts, funeral costs, and other expenses related to your passing.
Having cover could help ensure any debts are taken care of so your family and/or loved ones aren’t left with a financial burden. You can also look into joint life insurance if you are part of a couple and would like a cost effective way to cover both parents or guardians.
To provide for your children's or dependent’s education
If you are concerned about inheritance tax, you may want to consider writing your policy in trust. Writing your policy into trust helps to ensure that a potential pay out goes straight to your beneficiaries and doesn’t end up in your estate where it may be subject to inheritance tax.
Learn more about writing your policy in trust.
To replace lost income
If you're the main source of income for your family/dependants, life insurance can help deal with any lost wages. This way, your family/dependants could maintain their standard of living, keeping up with expenses like rent or mortgage payments.
And if you’re not the main source of income, it’s still worth considering if your income or work would be missed by the household. Could your family/loved ones maintain their current standard of living without you?
For example - if you do most of the childcare, would your partner need funds to pay for day-care or a nanny if you were to pass away?
Get covered today
Life insurance can be an important part of any new parent's or guardian’s financial plan, and it's never too early to think about. With our easy to use online quote service, you can get an instant life insurance quote in minutes. Explore your options and take the first step to protecting your family and/or loved ones future.
Speak to the experts...
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.
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