Life insurance for parents in the UK

Typically, parents in the UK benefit from arranging life insurance to provide financial protection for their children.

However, raising a family is expensive, meaning budgets can be tight and adding an additional monthly outgoing may seem impossible.

At Reassured, we have helped protect over 1,000,000 families, comparing life insurance quotes to secure the best deal.

We're an award-winning and FCA-regulated brokerage, here to compare quotes and save you money.

Get in touch for your free life insurance for parents quote and take the first step to protect your family's financial future.

New parents can secure comprehensive life insurance from 20p-a-day...

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Do parents need life insurance?

Whether you're a new parent or have grown-up children, life insurance is an affordable way of securing your family's financial future.

The proceeds from a life insurance pay out could one day prove invaluable, covering:

  • Mortgage repayments
  • Future family living costs
  • Loss of income
  • Childcare fees
  • Rising funeral costs
  • Outstanding personal debt

Without protection in place, these costs would fall to your loved ones, creating an enormous financial strain.

Yet, unfortunately, only 50% of UK parents have life insurance, leaving half of families unprotected and vulnerable[1].

However, there are multiple affordable policy options available...

How much life insurance do you need?

How much life insurance you need will depend on what it is you're looking to protect.

Generally speaking, you should consider all of the aspects you would like to financially provision for and the sum of these should be the overall amount of protection you secure.

For example; outstanding mortgage + family living costs + funeral costs + university fees = sum assured.

If you're unsure of the amount of life insurance you require, simply get in touch.

We can discuss your individual requirements and provide you with all the information you need to make an informed decision.

Parents life insurance calculator

Enter your financial commitments below to understand the level of parents life insurance cover you require.

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£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.
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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.
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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.
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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.
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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.
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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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Let us find your best available quotes.

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Life insurance for new parents

Having a baby is often a trigger point for becoming more aware of your mortality.

As a result, many new parents look to arrange life insurance at this time of life.

However, it can also be a time when purse strings become tighter due to all the new expenses a newborn brings.

The good news is at Reassured we can compare multiple quotes, helping you arrange the most cost-effective cover to protect your family.

Simply get in touch today to obtain your free quotes.

Tips for new parents considering life insurance

There are a number of ways parents can make the most of their selfless investment.

Here are our top 5 life insurance money-saving tips for parents:

  1. Always compare quotes to secure the best deal
  2. Consider your best type of policy to avoid paying for unnecessary cover
  3. Determine exactly how much cover you require, so you don’t pay for more than you need
  4. Live a healthy lifestyle to help reduce the cost of premiums
  5. Write your policy in trust (for free) to avoid/reduce 40% inheritance tax

Best life insurance for parents

As a parent, the best life insurance will depend on your circumstances and what aspects of your life you're wanting to protect.

The cost of your monthly premiums is calculated based largely on the level of risk you pose to the insurer.

This takes into account the following key factors:

  • Age
  • Current health
  • Medical history
  • Smoking status
  • Amount of cover (pay out amount)
  • Type of policy cover

Each type of life insurance is best suited to protecting certain aspects of your life.

Therefore, the best life insurance for you will be one that is within your budget and which offers the type of protection you require.

The good news is you have a number of policy options available to you...

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Term life insurance for new parents

  • Cheap monthly premiums
  • Provides a cash lump sum pay out
  • Sum assured up to £1,000,000
  • Decreasing and level term options

Term-based life insurance is the most common policy choice among new parents.

Cover lasts for a set period of time and if you pass away during this term, a pay out will be made to your loved ones.

There are two types of term life insurance; level and decreasing term.

Level term life insurance provides a fixed lump sum pay out making it ideal for covering aspects which don’t change in value.

For example, an interest-only mortgage, an inheritance or daily living costs such as childcare.

Decreasing term, on the other hand, provides a lump sum pay out which reduces in value throughout the policy term.

As a result, it's best suited to cover costs which decline over time, for example, a repayment mortgage.

The below data compares the monthly cost of a £100,000 level term vs decreasing term policy over a 30-year period for a non-smoker[2].

Age Level term cover Decreasing term cover
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


At Reassured, we compare quotes on a large number of level and decreasing policies, helping you secure the most cost-effective option.

Family income benefit

  • Tax-free monthly income
  • Cheap monthly premiums
  • Pays up to £5,000 per month
  • Helps with long-term family budgeting

Unlike term life insurance which pays out a lump sum, family income benefit provides your family with an ongoing, tax-free income.

Cover remains in place for a set term, and if you were to pass away during this period, your family will begin receiving ongoing payment until the term expires.

As a result, this type of life insurance is ideal for replacing a lost income and covering living costs.

It may be that you would benefit from having a family income benefit policy alongside term cover to ensure full protection for your family.

Family income benefit tends to be one of the cheapest forms of life insurance as the risk to the insurer reduces over time.

It also eliminates the need for long-term budgeting and difficult investment decisions as with life insurance.

Contact our team to compare quotes and ensure you get the most suitable policy to meet your needs.

Joint life insurance for parents

  • Covers two lives simultaneously
  • Saves on average 25% (compared with two single policies)
  • Only provides one pay out
  • Normally pays out on first death

Joint life insurance protects two lives simultaneously and saves on average 25% compared to two single policies.

As a result, it's a popular choice among young parents.

If one parent passes away, the other will receive a pay out, which can be used to protect your family.

However, upon the first death, the policy expires, leaving the surviving partner unprotected and needing to arrange cover when older.

It's likely cover will still be required for protecting your children, therefore, if your budget allows, it may be best to opt for singular cover.

Two single policies could result in two separate pay outs, potentially offering double the coverage.

The following table shows the average cost of two single life insurance policies, compared to one joint policy, for between £100,000 - £200,000 cover (without critical illness)[3].

Age Two single policies One joint policy
30 £11.78 £11
35 £18.08 £14.39
40 £26.70 £22.29
45 £42.42 £34.14
50 £67.78 £53.96


By contacting Reassured today, we can compare joint and single quotes to help you find the best deal.

The cost of life insurance for parents

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

They take into account your age, health, whether you smoke, and amount/type of cover to determine the likelihood of a claim.

Parents who pose a high risk will pay a higher monthly premium than their less risky counterparts.

The good news is, you can save money when arranging life insurance, simply by comparing quotes.

At Reassured, we can arrange life insurance for parents from as little as 20p-a-day.

Compare Life Insurance » Find Your Best Quote

Free life insurance for new parents

Several insurers in the market have recently begun offering free life insurance for parents.

Cover lasts for the first year of their child’s life and usually protects each parent for a sum assured of £10,000.

Whilst this may seem like a great deal, in reality, £10,000 is unlikely to be sufficient to support your family if the worst were to happen.

Factoring in costs such as mortgages, debts, childcare and living expenses, it’s easy to see how fast this £10,000 would go.

Therefore, to ensure your family receives the true amount of cover required, it's best to arrange standard life cover with a sufficient sum assured.

How long do you need life insurance?

Deciding how long you require life insurance again will largely depend on what it is you're wanting to protect.

For example, you may want to set your decreasing term cover to mirror the length of your mortgage.

This ensures, your most expensive asset, your home, is protected and your family wouldn't have to move.

Alternatively, you may use the age of your children to determine the length of your policy.

This will enable you to ensure you have adequate cover to guarantee their financial security until they're independent.

It's also important to take into consideration the possibility that your kids may go to university and require financial aid for longer.

Having more children

Life insurance policies can usually be adapted if your personal circumstances change.

Having more children or moving to a larger home are two instances where a special event option can be triggered.

This is when the sum assured can be increased without the need for additional underwriting. (Although, this increase will be reflected in the cost of your premiums).

If a special event option isn't available, you could cancel your existing cover and take out a new policy.

Alternatively, you could keep your existing policy and take out a second policy to bridge the cover gap.

In this instance, contact Reassured to identify your best options.

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Protecting stay-at-home parents

It’s a common misconception that only working parents earning a salary require life insurance.

If a two-parent family were to suddenly become one, the remaining parent is likely to face many challenges.

Problems such as having to reduce their working hours to take care of the children, or alternatively having to pay expensive childcare fees.

Think about all the unpaid jobs a stay-at-home mum or dad performs; teacher, taxi, cook, cleaner, doctor, childminder...

Then think about the financial and practical implications if they were no longer around.

For this reason, it's recommended that both parents secure life insurance.

Contact our team today to discuss your needs and determine the best cover for you.

Best life insurance for single parents

As a single parent, it's likely that you're your child’s only financial support. For this reason, life insurance is usually essential.

Despite this, only 42% of single parents have life insurance cover[4].

As a single parent, if you were no longer around, your children would be left without your emotional or financial support.

Arranging single parent life insurance is no different from arranging a single policy.

Determine what it is you're looking to protect, how much cover you need and how long you need it for.

You'll continue to pay premiums for the duration of the policy and if you pass away during the term, your beneficiaries receive a pay out.

We're aware that living in a one-income household can mean that your budget is tighter, but at Reassured, we compare quotes to save you money.

Contact our team today and get single parent life insurance from as little as 20p-a-day.

Life insurance for young parents

It's not uncommon to become a parent as young as 16 years old.

Unfortunately, this also means that you're financially responsible for another human being from this young age.

Even at this age, if the worst were to happen to you it would leave your child financially vulnerable.

Please note, life insurance is only available for those aged 18 or over.

Arranging life insurance for young adults can actually be the perfect time to secure cover.

Being younger and likely in good health will result in low premiums, meaning you can secure protection until your dependants are independent for just 20p-a-day.

Contact our award-winning team today to lock in lower rates.

Life insurance for parents over 50

Whilst term life insurance and family income benefit are still available to parents over 50, there are two other policy types you may consider.

An over 50s plan provides guaranteed acceptance to all UK residents aged 50-85.

Cover lasts for the rest of your life, guaranteeing a pay out.

This is ideal for anyone who has experienced less than favourable health, as no medical information is required.

The downfall with this type of cover, however, is that the sum assured you can secure is significantly lower. For example, £25,000 vs. £200,000.

Therefore, depending on what it is you're looking to protect, this may not provide a large enough level of cover.

Whole of life insurance, on the other hand, provides the potential for £200,000, lasts for the rest of your life guaranteeing a pay out but does require medical information.

As a result, this type of cover is ideal for those in later life who are in good health.

Compare Life Insurance for New Parents »

Life insurance for parents with cancer

Unfortunately, suffering from cancer as a parent can make it more difficult to obtain life insurance.

Most providers will require you to have experienced a recovery period of 2-10 years before offering protection.

This will vary between insurers, making it essential to compare providers to ensure you find the best policies to fit your circumstances.

During the application process you'll be required to provide information regarding:

  • Type of cancer
  • Treatment undertaken
  • Staging/grading of cancer
  • Time since recovery

The cost of your life insurance will also be affected by the stage of cancer you experienced and the time elapsed since recovery.

Unfortunately, whilst the cost of cover for parents with cancer is likely to be higher, the importance of having such cover is more prominent than ever.

Get in touch with Reassured today to discuss your options and secure the best cover.

Life insurance for children

It's often questioned whether or not you can purchase life insurance on behalf of your parents? The answer is yes.

It's possible to purchase life insurance on behalf of your parents, although the policy will remain in their name and any decisions regarding the policy (such as cancellation) will remain theirs.

Also, your parents will need to complete any required health and lifestyle questionnaires themselves.

As with any policy, the insurer will assess the likelihood of a claim being made and calculate the premium accordingly.

When deciding to take out life insurance on behalf of your parents, it's important to consider the type of life insurance policy most suitable.

This will be determined by their age, health, smoking status and the sum assured they're looking to secure.

It's common for children to look into taking out cover for their parents when they're in later life.

In this scenario, whole of life insurance or an over 50s plan would generally be the most suitable options.

Should I buy life insurance for my parents?

Whether or not you should purchase life insurance on behalf of your parents will depend on the financial impact their death would cause.

If you rely financially on your parents, you're likely to benefit from arranging life insurance on their behalf so that a pay out can be used to replace the ongoing financial support they provide.

Furthermore, the cost of a funeral has risen 128% over 16 years and now sits at an average of £4,184[5].

If paying for this is likely to prove difficult, arranging life insurance on their behalf could provide peace of mind that the cost of their funeral is covered.

Alternatively, if the cost of your parents funeral is the only finance you are looking to cover, a funeral plan may be more suitable.

A funeral plan allows you to pre-pay the cost of a funeral, locking in today’s rates to avoid any further increases.

At Reassured, we provide both life insurance and funeral plans, so get in touch to determine the best solution for you.

Critical illness cover

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

This pay out could then be used to replace lost income, make necessary home adaptations or simply to enjoy with family.

Critical illness cover does come at an extra cost but can be applied to any of our term life insurance policies.

Simply get in touch today for your free quote.

Terminal illness cover

At Reassured, all life insurance policies come with terminal illness cover as standard.

Terminal illness cover means you can make an early claim on your policy if you were diagnosed with a terminal illness and given less than 12 months.

This early pay out could be used to allow you to settle your finances or pay for private medical treatment.

Writing your life insurance in trust

Writing your life insurance in trust can help your pay out avoid 40% inheritance tax and probate.

At Reassured we're able to offer a free trust service on the majority of the policies we sell, to help guide you through the application process.

We're also on hand to answer any questions you may have.

The key benefits of writing your policy into trust are:

  • Avoid or minimise 40% inheritance tax, (over the £325,000 threshold)
  • Avoid the lengthy probate process, (for a quicker pay out)
  • More control over who gets the money, how much and when

Get in touch with our customer services team today to make the most of your selfless investment.

Compare life insurance for parents quotes

You may be surprised to learn that the cost of premiums can vary significantly, as insurers employ different underwriting criteria.

Regardless of whether you're a new or an established parent, it's really important to compare quotes to secure the best deal.

Reassured is now the UK’s largest FCA-regulated life insurance broker*.

We’ll compare quotes from our panel of insurers, identifying the best available price.

What's more, our award-winning, no-obligation service is completely fee-free to use.

So, if you're a parent without life insurance protection why not put us to work today?

Compare Life Insurance for Parents »

Sources:

[1] https://www.legalandgeneral.com/life-cover/confused-about-life-cover/articles-and-guides/protection

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

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

[4] https://www.beaglestreet.com/help/guides/single-parents/

[5] SunLife (2021), Cost of Dying Report, sunlife.co.uk/costofdying2021

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