Family life insurance is a good idea

If you are undertaking a review of your family finances, it is worth considering what would happen if a key member of your family or the main earner in the family was no longer around and the family had to cope in those circumstances. What would the financial impact be and how would they cope with the loss.

Life Insurance for a family is a good choice

After the loss of a key member of the family, you will be faced with funeral costs immediately but then questions about paying mortgages and the costs of living will arise soon afterwards. The following example list of living expenses would need to be considered:

·      Childcare 

·      Transport and Car 

·      Food shopping

·      Clothes

·      Energy costs (fast becoming a major cost)

There is a wide range of insurance policies that can help to protect your family in these circumstances.

What are the benefits of family life insurance?

A family life insurance policy can help pay for all the costs listed above but can also be used to leave an inheritance for your family and maybe grandchildren. This will depend on the level of cover you choose.

Peace of mind is also a huge benefit when you have a family. Knowing that you have protected your family against an unknown but significant risk should help you to rest easy.

Family life insurance, what are the choices?

There is a wide range of policies so you should talk to an expert at an early stage so that you make the right choice.

Joint life policies that protect both partners are worth considering. This is a single joint policy that will pay out to the person who survives the other if one dies while the policy is in force. These joint policies can be more affordable and are easier to administer since there is only one set of paperwork.

Family Life Insurance must be kept up to date

Remember to review your level of cover as time progresses. Your family may grow with new members of the family or health issues may surface.  Make a note to review your policies on a regular basis in your diary.

Bur remember-Most policies require you to keep your insurer up to date with significant changes, so it is important to make sure that this happens as changes occur.

Family life insurance and children

Most of the discussion is about protection for parents but it is possible to get coverage for children also. The type of policy that is mostly discussed for children is critical illness as distinct from life cover. We will discuss issues around critical illness in more detail in an article specifically about this subject.