Go paper-free
Amend paper-free preferences for your statements and communications.
Family life insurance
-
If you’re new parents, have a growing family or your children are making their way in the world, life insurance could give valuable peace of mind.
Life insurance could support your family in several ways in case you were to pass away unexpectedly.
Covering mortgage payments for the family home
Losing a family home can be a difficult time for any family. A life insurance policy could help cover any mortgage repayments in your absence. Your loved ones could carry on living in their home without the stress of carrying that large financial burden alone.
It’s worth going over different types of life insurance to find the right one for your family. For example, if you’re planning to cover an interest-only mortgage, then a level term life insurance policy may be more suitable. On the other hand, a decreasing term policy may be more suitable for a repayment mortgage.
Covering living and education costs for your children
As a parent, you’ll want to give your children a solid start in life. Life cover for parents could help secure your children’s financial future, even if you’re not there. The lump sum from a valid claim might help pay for common household costs like clothes and food. Or you could use the money to pay for their education, until your kids are financially independent. For example, to help cover university fees and living expenses.
Maintaining your family’s standard of living
Without the protection of life insurance, your family might struggle to cover living costs in the event of your unexpected passing. Cover in place could relieve your financial pressures during a difficult period of grief.
-
Not sure if a family life insurance policy is right for you? Let’s look at some situations where a life cover might suit your needs:
Homeowners
Family life insurance might be worth considering if you own a home with a mortgage. It could help your family cover the remaining debt if you weren’t there. Depending on the type of cover you select, a successful claim payout could also give you extra money to cover future household expenses.
New parents with young children
New parents might want to consider taking out a life insurance policy for their family, especially if they have very young dependants. The payout from a valid claim might help support the remaining parent by covering clothes, food, and childcare costs.
Parents with older children
Life insurance could help financially protect your children, regardless of their age. Even if they’re older and more independent, the payout from a life insurance policy could support them into adulthood. A lump sum from a valid claim might contribute to major life milestones. For example, buying their first home, getting married or having children of their own.
Couples
Couples with shared financial costs and goals, could find a life policy useful, in case one of them were to pass away unexpectedly. The payout from the policy may help cover loans, bills, mortgage repayments, or any other shared financial commitments. A couple might consider joint life insurance, which covers you and your partner under a single policy. Just be aware that a valid claim on a joint life policy will pay out once, even if only one of the policy holders passes away.
-
There are different types of life insurance policies you could consider if you’re looking to protect your family’s financial future. These include:
Term life insurance
This type of policy covers you for a set period, as opposed to whole of life insurance. There are three types of term life insurance to choose from:
- Decreasing term life insurance. With this policy, the potential payout decreases over time. That means it’s best suited to covering large, long-term loans, like mortgage repayments on the family home that decrease over time.
- Increasing term life insurance. This type of term life insurance sees the potential payout increase over time, in line with inflation. This could protect your family in case living costs significantly increase in the future.
- Level life insurance. With level life cover, the payout stays the same during the policy term. You might consider this policy if you want to know exactly how much your family could claim for in your absence.
Whole life insurance
Rather than providing insurance for a set period of time, like a term life insurance policy, whole life cover protects your family for as long as you live and maintain your policy. Because of this, it’s usually the most expensive type of life cover.
Critical illness insurance
Unlike life insurance, which provides for your family in the event of your death and a valid claim, critical illness cover could provide you with a payout. That’s depending on you making a valid claim after being diagnosed with a critical illness or condition covered by your policy.
The money you receive could help to support you and your family. For example, while you undergo treatment or make necessary changes to your home.
You can buy life and critical illness together, or separately. Always read policy documentation carefully before you go ahead, making sure it gives the cover you really need.
Whatever cover you select, it’s important to know that your policy has no cash in value at any time. If no claim is made during the term, the policy will end and you’ll get no money back. If you don’t pay your premiums on time, the policy will end and you’ll get no money back.
Our life insurance and critical illness cover policies are provided by Scottish Widows - who are also part of Lloyds Banking Group. They are our life insurance experts, helping to protect what matters most for over 200 years.
Frequently asked questions
-
This depends on your family’s needs. Accounting for your monthly or yearly expenses might help you work out how much cover you’ll need. Think about your current income, and the evolving needs your family might have in the future. All of this may then help you decide on the type of family life insurance coverage that’s within your budget.
-
Different things come into play for the cost of a life insurance premium. Factors such as medical history, lifestyle, and health will impact your premiums. Make sure you are honest when applying for life cover. Failure to do so might prevent your family from making a valid claim in the future.
-
To apply for life insurance with us, you need to be a UK resident aged between 18 and 59. The earlier you purchase cover, the lower your premiums could be, depending on factors such as your lifestyle and health.
-
While life insurance may not seem important if you don’t have dependants, you might have people close to you that you want to support in your absence. A life insurance policy could help you to leave a financial legacy to parents, siblings, or even friends if you were to pass away unexpectedly.