Why it’s more important than ever to review your life insurance when you become parents
New or expectant parent? Look again at your life insurance! (Or consider adding it to your to-do list.)
Becoming a parent is a busy time for all involved, and when anticipating the arrival of a cherished new addition to your family, likely the last thing on your mind is life insurance. However, things happen, and while it is understandable that at the moment your lives are filled with happiness, it is also vital that the doubt in the back of your mind as to what would happen if the worst were to come to pass is replaced with peace of mind.
Here at Thing’s Happen, we can help with that.
A new addition to your family? – A change in circumstances.
Many parents, when having a new child, already have life insurance, whether that be from taking out a policy after having a previous child or through their mortgage. However, a lot of parents don’t realise that their existing policy may not consider their change in circumstances or are not fully aware of the different types of cover policies that are available.
Have mortgage protection? – Brilliant! But does it fully meet your needs?
A recurring theme and frequent misconception are that you already have life insurance through your mortgage; therefore, nothing else is needed. However, while having your mortgage covered is an essential policy to have, it doesn’t consider other requirements that you and your family may have. What would happen if one of you became ill and lost your source of income? What if the unthinkable happened and one of you became a single parent? These questions are unthinkable; however, for your peace of mind and your family’s future potential quality of life, they are worth thinking about.
The Why, The What? and everything in between. Life Insurance in a Nutshell
The idea that one of you may not be around in a few years or that you may need to stop working is indeed one that bears not thinking about, but for the purposes of maintaining your child’s quality of life, “What if this were to happen?” is a question that should be asked at least once. Life insurance comes in a variety of different shapes and sizes and can be moulded to fit your exact needs.
Standard Life Insurance: A Head Start
First of all, a simple life insurance policy does exactly what it says on the tin and can provide your child with the help you would want for them if you were no longer around. Do you: Want to give your child a head start in life? Want to help them pay for any large expenses in the future, such as a mortgage or university fees? Want to leave your remaining partner a lump sum to help them raise your child? If the answer to any of these questions is yes, then an insurance policy for this purpose is likely worth considering.
Family Income Benefit: Quality of Life
Another type of cover is a family income benefit. This can provide a monthly income to your remaining partner if the worst were to happen, provide them with the funds and means to raise your child from childhood all the way to their independence, and help ease the financial impact of becoming a single parent.
Income Protection/Critical Illness: A Financial Safety Net
Finally, there is critical illness and income protection cover. This type of cover asks the question, “If one of your incomes were to stop, would you be able to maintain the same quality of life for you and your child?”. Critical illness cover would cover you for a vast number of illnesses that may affect you later in life and may cause you to need to stop working and lose your income. While income protection would ensure that if you had to stop working, your income would be maintained, and your family’s quality of life would be secured.
Endless reasons why: children’s illness cover, pregnancy cover, and other benefits
Now that’s a lot to take in, and that’s without mentioning the other benefits that life insurance can provide, such as pregnancy cover and children’s illness cover, as well as many other provider-specific benefits such as health checks and mental health support through Aviva’s Digicare service or 24/7 GP consultations through Royal London’s helping hand.
Children’s illness cover is a great option for new parents as it covers your child for a wide range of potential illnesses, including child-specific illnesses, and can be catered to your specific needs and budget, providing you relief from any medical expenses. If your child is still on the way, pregnancy cover can also be an additional inclusion to any critical illness policy, monetarily protecting you from any pregnancy complications and ensuring you get the help that you require.
Never considered life insurance before?
Well, now is the perfect time! Having a new child, as previously mentioned, leads to a major change in your circumstances and family life. Here at Thing’s Happen, we believe the question of whether to take it out or not is a question that should be asked to every new and expectant parent. With around 63%* of the UK’s population not currently having a life insurance policy, we have made it our mission to raise awareness about the importance of getting covered, not only to make sure parents have the peace of mind that their children will have a good quality of life no matter what, but also so that if the worst really does happen, your child, your family, and yourself have a financial safety net ready to catch you.
Then, with having a new child and experiencing a change in your family’s circumstances, there couldn’t be a better time to review your policy. Not only to consider additional types of cover for your child, such as pregnancy cover or children’s illness cover, but also make sure the amounts of cover you are insured for are suited to your new requirements. Reviewing your policy can also save you money, as rates change constantly.
Because, through Things Happen, you will receive tailored financial advice from a fully qualified financial adviser who will compare the whole market of life insurance providers to find you the best price for a bespoke policy that is fully catered to your specific needs. We will be with you every step of the way in shaping your policy the way you want it without placing any of the stress or hassle on yourself, as well as helping you place your policy into trust.
A Trust? What’s that?
A trust is a free addition to your life insurance policy that allows you to specify where you would want the money to go if anything were to happen to you and who you would want to receive it. It also provides a multitude of advantages, such as bypassing the occasionally long process of government probate and inheritance tax, so it is definitely something worth doing. Many people who take out a life insurance policy are unaware that they can place their policy into a trust; therefore, they miss out on these benefits. At Things Happen, we have a dedicated team to help you with the trust process: streamlining it, cutting through the legal jargon, and ensuring you get the most out of your policy as a result.