Why is family life insurance important?

Arranging family life insurance is vital to provide financial stability for your loved ones if the worst were to happen to you.

Unfortunately, it’s a sad fact that a child loses a parent every 22 minutes in the UK[1].

Cover can be used to repay a mortgage, help with living costs or pay for your funeral to avoid financial disruption to your surviving family.

At Reassured, our award-winning team can compare quotes on your behalf to secure the best possible deal.

Our service is FCA regulated and we don’t charge you a fee.

Get in touch today to arrange family life insurance from as little as 20p-a-day...

What is family life insurance?

Family life insurance is simply a way of describing life insurance taken out to protect your loved ones’ financial security if you were no longer around.

There are various policy options available and the most suitable will depend on what sort of cover you're looking to provide your family.

These can either provide a lump sum to cover large expenses like a mortgage, or on-going monthly payments to replace a lost income and cover day-to-day living costs.

Both types of family life insurance require monthly premium payments and if the worst were to happen, your loved ones could make a claim.

You may want to read our in-depth article on how life insurance works.

The cost of family life insurance

The cost of family life insurance is calculated based on the level of risk you pose to the insurer.

Therefore, the more likely a claim, the higher the cost of your monthly premium.

Key factors used to calculate the cost of your premiums include:

  • Weight/BMI
  • Type of cover
  • Amount of cover

As a result, it's best to take out life insurance as soon as possible, at a younger age and in better health.

At Reassured, we can arrange family life insurance from just 20p-a-day.

Simply get in touch with our team for your free no-obligation quote.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.


£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.


According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.


The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.


You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.


According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.


If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

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Your total cover estimate

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Tips for cheap life insurance for your family

Families often have to survive on a tight budget, making it important to arrange life insurance as cost-effectively as possible.

There are a number of tips to ensure you pay as little as possible for your cover:

  1. Always compare quotes to secure the best deal
  2. Live a healthy lifestyle to help reduce the cost of premiums
  3. Arrange cover as soon as possible to avoid higher costs due to your older age or ill health
  4. Consider your best type of policy to avoid paying for unnecessary cover
  5. Determine exactly how much cover you require, so you don’t pay for more than you need

How much life insurance do I need for my family?

When arranging life insurance, it's important to ensure your family is comprehensively covered.

You should consider the various aspects of your family’s life you're looking to protect, as the sum of these will provide you with the level of cover required.

For example; outstanding mortgage + daily living costs + outstanding debt+ funeral costs = required sum assured.

You should consider that in the UK:

  • £231,713 is the average cost of raising a child to 21 years[2]
  • £121,687 is the estimated average outstanding mortgage per household[3]
  • 35% of households have no savings at all[4]
  • £222.36 per week is the cost for full-time childcare[5]

For help understanding the amount of cover you require, or to obtain a free quote for the best deal, contact our team.

What is the best life insurance for a family?

The best life insurance to suit you and your family will depend on what it is you're wanting to protect.

There are various types of family life insurance policies, each better suited to protecting certain aspects within your life.

Ultimately, it should be suited towards protecting the most important aspects for your loved ones as well as providing an adequate level of coverage, all whilst being within your budget.

Keep reading to discover the suitability for each of these policies, or get in touch to determine your best solution.

Family term life insurance

  • Provides a lump sum pay out
  • Provides cover for a specified period of time
  • Cover up to £1,000,000
  • Term length up to 40 years
  • Affordable premiums from 20p-a-day

The most common form of family life insurance is term-based cover.

Coming in the form of level or decreasing, term life insurance provides you with protection for a specified period of time.

If you pass away during this period, a lump sum pay out will be made to your loved ones.

Level term life insurance will provide your loved ones with a fixed lump sum pay out, making it ideal for covering assets which don't change in value over time.

As a result, it's ideal for covering an interest-only mortgage, paying for your funeral or to provide an inheritance.

Decreasing term life insurance, on the other hand, provides a pay out which declines in value over the life of the policy.

As a result, it's better suited to covering large costs which decline over time, for example, a repayment mortgage.

The table below shows a comparison between the monthly cost of a level term and decreasing term life insurance. Prices based on £100,000 cover, over a 30-year term for a non-smoker[6].

Age Level term Decreasing term
30 £5.83 £4.62
35 £8.10 £6.12
40 £11.58 £8.68
45 £18.29 £12.65
50 £30.20 £20.67

To discuss the best option to meet your needs, or obtain your free quote, simply contact our award-winning team.

Family income benefit

  • Provides on-going, tax-free, payments up to £5,000 a month
  • Provides cover for a specified period of time
  • Helps with long-term family budgeting
  • Term length up to 40 years
  • Affordable premiums from 20p-a-day

Unlike traditional life insurance, which pays out a lump sum, family income benefit provides ongoing, tax-free monthly payments.

Regular income payments start from the date you pass away, until the end of the policy term.

This type of cover is ideal for replacing a lost income, covering daily living costs or paying for additional childcare if required.

Family whole of life insurance

  • Guaranteed pay out
  • Provides cover for the rest of your life
  • Provides cover up to £1,000,000
  • Possible to pay in more than the sum assured
  • Cover from as little as 20p-a-day

Whole of life insurance lasts for the rest of your life and, therefore, unlike life insurance, guarantees a pay out. This is a form of life assurance.

As with traditional life insurance, upon your death a lump sum pay out is issued to your family.

Whilst this type of policy is often used for similar purposes as level term cover, depending on your age and how long you live, it’s possible to pay more in than it'll pay out.

For this reason, whole of life policies are typically better suitable for those in later life, (perhaps with adult children or looking to cover their partner).

Joint family life insurance

Arranging joint life insurance can save, on average, 25% on your monthly premiums.

Therefore, for families on a tight budget, it can seem like an appealing option.

However, the biggest downfall with joint cover is it'll only pay out upon first death.

This can leave the surviving partner uncovered and having to arrange new cover at a later stage in life when they're likely to experience higher premiums.

Equally, when joint life insurance is used to protect two parents, if both were to pass away simultaneously, the pay out may not be sufficient to cover this twin loss.

As a result, if budget allows, it may be more beneficial to arrange two single life insurance policies.

The below table shows the average monthly cost of 2 single policies, compared to one joint life insurance policy for a sum assured of £100,000 - £200,000 (without critical illness cover)[7].

Age Two single policies A joint policy
Under 25 £11.78 £11
25-34 £18.08 £14.39
35-44 £26.70 £22.29
45-54 £42.42 £34.14
55-64 £67.78 £53.96

To discuss the options available within your budget, contact our team to receive your free quotes.

Multiple family life insurance policies

Unlike other forms of insurance, it’s perfectly legal to have multiple life insurance policies in place simultaneously.

As discussed, different policy types are better suited to protecting different elements within your life.

Therefore, if you’ve various aspects you’re looking to protect, such as a mortgage, family living costs and a funeral, you may find it beneficial to take out multiple policies.

For example, a decreasing term policy to protect your repayment mortgage and family income benefit to cover day-to-day living expenses.

Of course, this will depend on your budget, but it’ll allow for a higher level of cover to ensure your family are not subject to financial strain should the worst happen.

Contact our award-winning team to discuss an all-encompassing solution to meet your unique needs.

Life insurance for all the family

With families taking many shapes and forms, deciding who to cover, and how, may not always be straight forward.

When deciding who to cover within your family, it’s important to consider the financial impact their death would have on your family’s lifestyle and arrange protection accordingly.

Stay-at-home parents are often considered to not need life insurance as they don’t contribute a tangible income.

However, when taking into consideration all the unpaid jobs they carry out, it’s easy to understand the need for cover.

  • How much additional childcare would be required?
  • Would working hours need to be reduced?

Research from Bidvine[8] suggests the average death of a stay-at-home mum would equate to a loss of £80,000 a year, highlighting the necessity for life protection.

Your children, on the other hand, may not require cover, as their passing won't result in any loss of income, (see below).

Whilst it's possible to arrange life insurance for family members simultaneously, as discussed, this is unlikely to be the most beneficial solution as it'll only result in one pay out.

Extending your family

Throughout family life, it’s likely your personal circumstances will change.

Whether this is moving to a larger home or having another child.

Both of these scenarios are likely to require alterations to the level of life insurance cover you require.

A special events option can be triggered on your existing family life insurance to make the necessary changes.

This means that the sum assured can be altered and your premiums adjusted accordingly, without the need for additional underwriting.

This option is only offered by some insurers and some policies. The specific circumstances in which you can increase your cover can vary between providers and will be outlined in the policy.

Invoking a special events option will cause premiums to increase to cater for the greater level of cover.

It’s important to re-evaluate the cover you have in place should your family situation evolve.

How to take out a life insurance policy on a family member?

It’s more than possible to arrange life insurance on behalf of a family member and the process isn’t entirely different to arranging your own.

The person of whom the policy resides will remain the policyholder.

They'll be required to provide all of the necessary health and medical information and the rights to the policy remain theirs.

This includes the right to cancel the policy.

To discuss options for arranging cover on behalf of a family member, please contact Reassured.

Can I buy life insurance for my child?

Whilst some companies will provide the opportunity to arrange life insurance for your children, it may not be the most beneficial solution.

Due to no loss of income impacting the ability to meet daily living costs, it’s often not deemed essential to secure life insurance for your children.

Instead, it’s far more beneficial to secure life insurance for yourself and therefore, protecting the financial future of loved ones.

If looking to add this extra layer of protection for your family, it may be more beneficial to consider critical illness cover.

This will not only provide a pay out if you're seriously ill but could also provide life insurance for your children. Some providers will extend the cover to your children as standard, whilst others offer this benefit at an additional cost.

To arrange critical illness cover, with or without life insurance, contact our team for a free quote.

Critical illness cover

Critical illness cover provides you with a lump sum pay out if you're diagnosed with a serious, yet non-life-threatening illness.

This pay out can be used to replace a lost income, fund necessary home adaptations or simply to enjoy with your family.

All life insurance policies provided through Reassured have the ability to upgrade to include critical illness cover.

Simply get in touch today for your free quote.

Terminal illness cover

All term life insurance policies provided through Reassured come with terminal illness cover as standard.

This provides a lump sum pay out if you are diagnosed with a terminal illness and given less than 12 months to live.

The pay out can be used to get your financial affairs in order, pay for private medical treatment or simply to enjoy with your family.

Write your life insurance in trust, (avoid 40% inheritance tax)

Writing your life insurance policy in trust allows your loved ones to make the most of your selfless investment.

It passes the rights of your cover over to a trustee (similar to the executor of a will), which results in the following benefits:

  • Avoid/reduce inheritance tax by detaching the value from your estate (40% over £325,000)
  • Receive a faster pay out by bypassing the probate process
  • Have more control over how the proceeds are spent by stating your wishes to the trustee

At Reassured we offer a free trust writing service on the majority of the policies we arrange, providing peace of mind that your application is completed correctly.

Simply contact our customer service team today and we'll be happy to help.

How to buy family life insurance

Buying family life insurance doesn’t have to be a difficult endeavour.

It's important to compare multiple quotes to ensure you receive the best deal.

This can be done using one of the following three methods:

  • Individual research
  • Price comparison website
  • An FCA regulated broker

You should consider the following when looking to arrange cover:

  • What it is you're looking to cover
  • The best type of life insurance to meet your needs
  • How much cover you require

By using an FCA regulated broker, such as Reassured, we can save you time and help you determine the right type of cover.

You'll then need to provide personal details including your age, smoking status, employment and medical history in order that we can compare quotes to secure you the best deal.

This information is then used to calculate the level of risk you pose to the insurer and your premiums will be priced accordingly.

Your application will either be put on risk immediately, meaning cover commences straight away, your application may be referred and further information required or your application may be declined.

This will be based on the number of high-risk factors identified during the application.

Even those with high-risk factors may still be able to achieve cover through our service.

We have an impaired risk team who have helped arrange cover for 45% of customers declined elsewhere.

Simply contact our team today to start your journey towards protecting your family.

Family life insurance quotes

The cost and cover of family life insurance can vary significantly between insurers, making it essential to compare quotes before arranging cover.

Using our FCA registered brokerage will allow you to obtain all the information you need to make an informed decision on your best solution.

And our award-winning service comes at no charge to you.

We've arranged life insurance protection for over 814,000 families in the UK.

Simply get in touch today to obtain your free quotes and take the first step to protecting your loved one's future.


[1] http://www.childhoodbereavementnetwork.org.uk/research/key-statistics.aspx

[2] https://themoneycharity.org.uk/money-statistics/september-2017/

[3] https://themoneycharity.org.uk/money-statistics/51592/

[4] http://www.childhoodbereavementnetwork.org.uk/research/key-statistics.aspx

[5] https://www.moneyadviceservice.org.uk/en/articles/childcare-costs

[6] https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/much-100000-life-insurance-cost

[7] https://www.moneysupermarket.com/life-insurance/single-vs-joint/

[8] https://www.bidvine.com/blog/mum-salary/

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