Taking out a life insurance policy might sound too much like hard work, but protecting your family is always worth taking the time for. Think about it like this; if something were to happen to you or your partner now, how would that impact your children? Aside from the emotional trauma of losing a parent, there may be financial struggles that come with a total change of lifestyle and one less income. No amount of money could ever replace you or your partner but it can really help regain some sense of normality and security during the worst times, to cover costs and lessen the financial stress of losing someone you depend on.
Why is life insurance so important for parents?
Of course life insurance is important for so many people, but generally speaking if you have people who depend on you, you probably should have life insurance. That’s why life insurance is important for parents. Young children need all the care and attention that you can possibly offer. Not only this, but raising children costs money (more money than you might realise before going through it yourself). So having a regular, steady income is pretty vital when clothing and feeding a growing child.
And what about a roof over their heads? Mortgage or rent payments are arguably the most important outgoing each month, so if these cannot be comfortably paid with one less income then a life insurance policy becomes all the more important. The last thing that your family is going to want to deal with alongside a death is potentially losing their home because they cannot keep up with payments.
It’s also important to consider any debts and loans that you may have. Unfortunately, these don’t just disappear when someone passes away. They are passed to your dependents. This is just one more thing for them to worry about having to pay. Again, with a life insurance policy you can make sure that these debts can be paid off.
How do I get a life insurance policy?
The first step is to make a few decisions about the life insurance policy that you wish to take out. Would you like a joint policy between you and your partner, or two single policies? A joint policy works out cheaper, however there can only ever be one payout and one claim. Hopefully, this is all you’ll ever need! But consider that something could happen to both you and your partner at the same time i.e. a car accident. It’s horrible to think about, but sensible to factor in. If you can afford the extra premiums, a single policy for each parent will give you maximum protection.
You also need to think about whether to choose a decreasing term policy or a level term policy. Decreasing term policies are designed to cover a debt that decreases over time, such as your mortgage or a loan. As your debt decreases, so does the payout designed to cover that cost. This makes it a cheaper option than a level term policy, as this pays the same agreed amount and lasts for the length of time that you choose. If you know that your family will need financial support for the next 18 years, then you’d take out a policy that lasts 18 years. It’ll payout enough to cover the important costs and help your children get by until they are financially independent. You could also buy whole of life cover. As the name suggests, this policy will last your whole life so that you are guaranteed a payout. This is of course the most expensive option though.
The next step is to find yourself a life insurance quote - easy enough to do via a life insurance broker. They’re experts in the industry so will know exactly how to find you the right policy at a price that works for you. And of course the final step is to take out your policy!