Becoming a mum is probably the best that can happen to a woman. Mums, in the UK and of course everywhere, fuss over their children. They also fear how their children would get on if they weren’t there even for a single day. With life insurance for mums, this anxiety is diminished to a great extent. Money can never alleviate the loss of a mother for your child, but it can- at the least- provide enough money for paying off the mortgage and the important milestones in their lives. As we found out that a child loses a parent every 22 minutes in the UK, we should make you aware of the life policies available for mothers.
Life Insurance For Mums- Mums-To-Be
As you prepare yourself to welcome the baby into your life, you’ll come face-to-face with the dangers awaiting both you and your child. Pregnancy is a time when medical conditions are contracted easily, unpleasant as it may sound, even leading to death. Without life insurance for mums, your baby would have to face emotional and financial instability from day one. It’s best to look at life insurance for mums right from the time you conceive. This life policy works no different than a life policy for a parent. You state what you want to protect, for how long and your personal details. If your pregnancy is progressing smoothly and there are no complications, life insurance for mums cover can start immediately. The insurer may consider your current weight while calculating premiums.
Life Insurance For Mums- Young Mums
Now, that you’re a young mum, you must surely know about the mortality risk you face. It’s possible to provide financial security for your child in case the worst happens. As a general rule, younger and healthier mothers get the benefit of low premiums, because of the reduced risk an insurer faces. So it’s not too late to look for life insurance for mums. For example, a 25-year-old mum can secure life insurance for mums for as low as £6 per month.
Life Insurance For Mums- Stay-at-Home Mums
It’s a common misconception that stay-at-home mums don’t need life cover as they don’t earn a monthly salary. However, if you were to keep a helper to do all the odd jobs you did like cooking, washing, taking care of kids and more, she’d charge thousands of pounds. For stay-at-home mums, it’s wise to think of your child and apply for life insurance for mums. If you were to pass away, your spouse would have to pay for an expensive nanny or reduce their working hours. A joint life insurance for mums covers the father too, but it pays out only on the first death.
Life Insurance For Mums- Working Mums
It’s only women who can successfully manage both the household and their career. Working mums often have to leave their baby with grandparents or pay for a nanny. Your death would devastate the family emotionally and financially as your income contributes to the household to a large extent. Life insurance for mums can help cover the mortgage and other living costs with the lump sum payout. While looking at a life policy, consider how much you earn and how much is needed to maintain your family’s lifestyle.
Life Insurance For Mums- Single Mums
It’s actually a challenge to be a single mother and care for your baby all by yourself. It’s likely that you work and are the sole breadwinner for your child. If you were to pass away, your family would have to move out and perhaps also alter their standard of living. Life insurance for mums allows you to prevent this by issuing a lump sum that can clear mortgage, provide a steady income or serve as an inheritance. Wait, as a single mum, life insurance for mums needn’t be costly. If you compare correctly and choose the best deal, you’ll find that it comes real cheap.
What Are The Different Types of Life Insurance For Mums Policies?
Your choice of a life policy would largely depend on what you wish to protect. Is it your house or your child’s schooling and day-to-day care? The most common types of life insurance for mums are:
- Decreasing Term Life Insurance:
Mums who wish to protect their home and mortgage usually go for decreasing life insurance for mums. The premiums here go on reducing over the term of the policy, and so does the payout amount. It’s practical because the cover declines as the mortgage you owe also gets paid off.
- Level Term Life Insurance:
Level term life insurance for mums is yet another option you can think about. In this, the value of the cover remains fixed and can be used to clear repayment/interest-only mortgage or meet day-to-day expenses or leave an inheritance.
- Family Income Benefit (FIB):
Your child might not be able to rightly invest the lump sum from your life insurance for mums policy if the time came. So, a Family Income Benefit (FIB) issues the payout in many small monthly payments. This takes care of living costs and your child can continue his/her life without worrying about finances.
How Much Life Insurance For Mums Cover Do You Think I Need?
While we can’t say for sure as every mum’s financial circumstances are unique, you should give a thought to why you want life insurance for mums, your current outgoings and family’s lifestyle. You should choose a life policy that can cover all of these and still leave some money behind. Do consider the existing costs as well as new ones that might arise on your passing away.
- Regular monthly payments of rent and mortgage
- Outgoing on food, clothing and leisure activities
- Bills for electricity, gas, water and council tax
- Legal and funeral costs
- Reduced working hours cause a reduction in income
- Extra childcare
Also account for the effect of inflation on your payout, particularly if your children are still young.
For How Long Should I Take Life Insurance For Mums?
Again, if you want your family to be free from the worry of paying mortgage, you should opt for a life insurance for mums policy mirroring your mortgage deal. Alternatively, if your children are young, you can keep your cover going until they’re financially independent, for example, after they complete university and get a job.
Life Insurance For Mums- Summary
- Life insurance for mums safeguards your child financially if you pass away unexpectedly
- Your child can have their own home and maintain their standard of living
- The best policy provides adequate cover at a price that suits your pocket
- Decreasing and level term life insurance for mums has a lump sum payout
- Family income benefit pays a monthly income
- Younger mums get the cheapest cover
- Stay-at-home mums shouldn’t ignore life insurance
- You can change your policy terms if you have more children after taking out life insurance for mums
- Women pay the same premium as men due to EU’s gender neutral ruling
- Write your policy in trust to avoid paying Inheritance Tax and speed up the payout
- Terminal and critical illness cover is available as an add-on