Family life insurance UK

Some policies provide cover for a specified period of time (the term), while others offer lifelong cover. Others can be used in the event of serious illness or to protect your income.

Which option is right for your family will depend on what you want to protect, how long you’d like to be covered for, as well as your budget.

Families are often on a budget and life insurance may seem like another monthly cost to be factored in.

But securing the right cover to protect your family doesn’t have to be costly.

In fact, it’s possible to secure life insurance from just 20p-a-day through Reassured.

You’ll pay for your cover in affordable, monthly payments, known as life insurance premiums.

At the point of application, you’ll be asked a few health and lifestyle questions which will help to determine the price you’ll pay for your cover.

Below we explore the different types of life insurance and their average monthly costs.

If you have a young family it can be beneficial to take out life insurance at a younger age, while you’re in better health, as you could secure a more favourable premium.

At Reassured, we can arrange family life insurance from £1.40 a week.

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

The best life insurance to suit you and your family will depend on what you want to protect.

There are various types of family life insurance policies, each better suited to protecting certain aspects of 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 more about each of these policies or get in touch to help you determine which is best for you...

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.

For example, if you have a 20-year policy with a monthly pay out amount of £2,000 and you pass away 5 years into the policy, you’re loved ones would receive £2,000 a month for the remaining 15 years.

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

Because the risk to the insurer reduces over time, as with decreasing term life insurance, family income benefit is usually a very cost-effective option.

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 your budget allows, it may be more beneficial to arrange two single life insurance policies.

We’ve used our award-winning broker service to compare the cost of two single policies and a joint policy. Prices are based on a non-smoker in good health, for £100,000 cover over a 20-year term:

To compare both joint and single policies, contact our award-winning team to receive your free quotes.

Income protection insurance is an insurance policy that will pay out to you to replace a percentage of your income if you’re unable to work, (often up to 70%).

This could be as a result of accident, sickness or unemployment (depending on your chosen policy type).

Cover can be taken out on a short term or long term basis and can be more or less comprehensive depending on the policy type.

Rather than a lump sum, you’ll receive your payments in monthly, tax-free instalments which can help with family budgeting.

This form of cover can be particularly beneficial for families with self-employed workers, as they won’t benefit from sick pay.

Unfortunately, we can’t currently compare income protection quotes for you at Reassured).

When deciding which family member should secure cover, it’s important to consider the financial impact their death would have on your family’s lifestyle.

For example, both parents should secure cover in case the worst were to happen.

If one parent passes away, could the other cope financially as well as taking on additional childcare?

The unpaid work of a stay-at-home mum is estimated to be worth over £100,000 a year^[6], which highlights the need for protection to ensure these costs are covered.

Cover for both parents could be taken out through a joint policy, although this will result in only one pay out or through two separate policies.

Why not speak to our team to compare single and joint quotes for you and your partner?

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

Extending your family or moving to a larger family home are scenarios that are likely to require alterations to the level of life insurance cover you require.

Some life insurance policies include a ‘special events’ option, which will allow you to make the necessary changes to your policy.

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

However, this option isn’t offered by all providers and will only be available on some policy types.

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

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

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.

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

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

[2] https://cpag.org.uk/sites/default/files/files/policypost/CostofaChild2020_web.pdf

[3] https://www.finder.com/uk/life-insurance-statistics

[4] https://yourmoney.lumio-app.com/uk-savings-statistics

[5] https://www.moneyhelper.org.uk/en/family-and-care/becoming-a-parent/childcare-costs

[6] https://www.channelmum.com/a/the-salary-mums-would-make-if-they-got-paid-for-childcare-revealed

Life insurance quotes above correct as of March 2021