Life insurance for mums

You might be the sole earner in the household, but even if you’re not, you might be worried about how your family will manage financially if you die or become ill. Life insurance for mums can help ease your mind, so we’ve set out what it covers and what you need to know.

Life insurance for mums

If you’re a mother and take out life insurance, if you die, the payout from the policy can help provide for your children and even pay for things like university fees or a deposit on their first home.

If you get critical illness cover, you can get financial support if you become seriously ill, which can help cover household expenses for you and your children.

Why do mums need life insurance?

If you’re a single mum, your children depend on you completely. Not being there to watch them grow up is unimaginable, but knowing they will be financially secure can help ease the burden.

Even if you have a partner or spouse who’s earning, will they be able to cope with just one income if something happens to you? If the answer is no, then your life insurance payout would help them, too.

What types of life insurance are there for mums?

There are three types of life insurance available for mums:

• Decreasing term life insurance. Decreasing term cover provides a lump sum payout if you die during the set term. As the name suggests, the payout sum reduces over time. This type of policy is ideal for covering a repayment mortgage.
• Level term life insurance. Level term life insurance also pays out a lump sum if you die during the policy term, but the sum remains the same over the life of the policy. For this reason, it’s best suited to cover an interest-only or repayment mortgage, to meet future living costs or to provide an inheritance.
• Family income benefit (FIB). Family income benefit provides an ongoing tax-free income to your family, rather than a one-off payment. The amount paid out is predetermined in the policy details and can cover day-to-day living costs.

Applying for life insurance when you are pregnant

Being pregnant shouldn’t make a difference when it comes to taking out life insurance.

That said, applying early can have its benefits, as some conditions that arise later in the pregnancy might mean the insurer postpones your cover until after you’ve given birth.

You can find out more in our guide to pregnancy and life insurance.

How much life insurance do mums need?

This depends on what the usual outgoings are for your family and how much money you think your dependants would need if you died.

How long do mums need life insurance for?

Many mums choose to maintain their life insurance cover only until their children are grown up and are financially independent.

However, even in this case, your loved ones can still benefit from a payout when you die. Life insurance can help with things like funeral costs and settling any debts you leave behind, like mortgage payments and credit card bills.

Your partner can also be helped by the extra financial security of the payout.

Life insurance for young mums

Generally speaking, the younger you are, the lower your premiums will be. Note that if you have existing medical conditions, you smoke or have a high alcohol consumption, your premiums will be more expensive, but your age can still be a benefit so taking out a policy early is likely to be worth it.

Life insurance for single mums

If you are your children’s only provider, it is even more important for you to make sure they are looked after financially if anything happens to you. Losing you will no doubt be devastating for your children, but having to deal with the financial responsibility this can bring will be a huge burden.

Of course, being a single mum might mean you also have less disposable income to put into things like life insurance, but getting even a basic, cheaper policy can still help support your children should the worst happen.

Life insurance for working mums

As a working mum, you are providing crucial funds to the household. Consider whether your family would be able to cope without your monthly wages. Even if you have a partner, they might not manage to pay all of the household expenses on one salary.

While nothing can replace your presence in your family’s life, getting life insurance can help them manage better financially without your support.

Life insurance for stay-at-home mums

Some might think that, as stay-at-home mums (or dads) don’t earn a salary, they don’t require life insurance. However, this is a misconception.

Parents who take on the responsibility of maintaining the household – cleaning, buying groceries and being the children’s private taxi service – all make an invaluable contribution to keeping family life on track.

Should you not be there to do all of these things, someone else will need to do them. This means either having to pay a professional, or having your partner or other family member take time out of their schedule. In both cases, having financial support in place will make this much easier for whomever assumes this responsibility.

Mums who smoke

If you smoke, you will be considered high risk for life insurance. This means that your premiums are likely to be higher.

Note that, even if you’ve given up smoking during pregnancy, unless you’ve had no contact with nicotine (including cigarettes, e-cigarettes and nicotine replacement products) at all for at least 12 months as a minimum, you will still be considered a smoker by most insurance companies.

Frequently asked questions

• What life insurance can I find that is free for mums?

  Many insurers offer free life insurance for mums during the first year of their child’s life. Some providers also offer free life insurance for parents of children up to a certain age.

  However, the payout from this policy tends to be very low and is unlikely to cover all your family’s needs should you die. For this reason, taking out a full life insurance policy can be a good idea.

• What is the best life insurance for mums?

  This will depend on your personal circumstances and requirements. The best way to find the most suitable policy for you is to shop around.

  Things to consider when comparing policies include:

  • Price
  • List of covered illnesses
  • Customer reviews for the company and the product
  • Minimum and maximum payouts
  • Rate of successful claims