01452 543 498 enquiry@us4life.co.uk

New Parent?  

Do you actually need life insurance?

When you become a new parent, whether it is for the first time, second or third it is not only exciting but also a very important and key time to consider things such as life insurance, or to simply assess whether your existing cover is actually suitable for your new responsibilities. By allowing us to help you take some very simple and quick steps, you can gain peace of mind in knowing your family’s future is financially secure.

With the excitement of the birth of a child, a piece of added protection often forgotten by new parents is life insurance. But if you’ve got a growing family, it’s even more important to have the right cover to protect your loved ones should the worst happen.

As a new parent, what additional costs be considered when buying any form of life insurance?

Bringing up a child means families face many new and unexpected financial pressures. The stand out question is always “Do you know how your loved ones will pay for these if you passed away?

Mortgage
Probably the largest outgoing in the majority of many home owners. Although some “day to day protection” may be in place against being unable to work due to an accident or sickness, the arrival of a new baby is a good time to double-check you have sufficient levels of life insurance in place, or even a surplus, especially if you have ever made any changes to your mortgage (extended the term, borrowed more money, converted some/all of it to an Interest Only mortgage).

Childcare

Being a new mum or dad, you are not only providing the much needed financial support for your new extended family, but also let’s not forget, you are constantly carrying out unpaid responsibilities including looking after your child full time almost. The cost of this to a single parent could be huge should either of the parents pass away.

Education
Whether it’s school fees, paying for education-related expenses such as school trips, uniforms and sports kit or university tuition fees, you may want to ensure your offspring’s education costs are covered.

General costs

From food and nappies to utilities and clothing, there are numerous goods and services that will still need to be paid for in the event of a death to help the family maintain its current lifestyle.

Loans and Savings
Alongside your mortgage, there may be other loans or credit cards which you don’t want to leave your loved ones to pay off. You may also want to ensure regular payments into your child’s savings account are kept up.

Afford the largest amount of cover possible.

Like everything, there is always a “suggested” and “preferred” amount of cover or calculations to follow when working this out – however, we are realists, and although sometimes people stretch themselves to try and afford the largest amount possible, we also strongly believe families should be suitably covered, at a cost within their budget, which enables them to also enjoy “being a family” and creating the memories that come with that.

Any level of protection should depend not only on your personal circumstances and what costs your family could face in the event of your death, but also what you can comfortably afford – Life Insurance can always be reviewed, changed or increased/decreased at a rate that fits in with your finances and family needs.

What protection will a life insurance policy offer my partner?

Life insurance provides protection for your partner against the financial burden that comes with the death of a loved one.

If you are the main wage earner, it is important to cover the loss of future earnings and the impact of a reduced income. If you are not the main wage earner, think about the impact your loss would have on household costs, such as childcare.