How Life Insurance can protect your family

When you’re juggling a busy lifestyle and looking after a family, sometimes you just want peace of mind that you're protected.

We’re exploring how life insurance for your family can provide security and what options are available to make sure your family is protected, whatever happens.

What is life insurance?

Having a good understanding of life insurance will help to see the benefits of a policy for you and your family. 

Typically when taking out a policy, the policyholder is agreeing to pay regular premiums, whilst the insurer agrees to pay a predetermined lump sum, or ongoing payments, to the chosen beneficiaries in the event of the policyholder’s death.

The amount received will vary by policy and depend on the level of cover chosen, and what it's needed for. For example, you may only want to cover paying off the mortgage, alternatively there might be other expenses you want to cover such as the day to day bills or school fees. 

In the UK, 35% of adults have life insurance and 48,782 claims were paid out in 2023. So if you're looking for protection for your family, or anyone who relies on you, life insurance can provide that peace of mind.

It's designed to offer reassurance that your loved ones will be provided for, if you’re not there to provide for them.

Anyone who has individuals who rely on them financially can benefit from a life insurance policy. The payout for life insurance can be used to pay off the mortgage and any other debts, replace your income and even provide funding for your children’s higher education.

How can life insurance benefit families?

Whilst it’s never a nice situation to think about, it’s worth considering what circumstances your family would be left in and how you can prepare. It can be beneficial to know that your family will have financial security.

Some of the most common times for people to invest in life insurance include: when starting a family, when buying a home and when people are reliant on them. 

Losing someone who brings in an income for the family can be difficult. Especially when dealing with many additional challenges that come with the loss of a family member.

Life insurance for your family can be a good way to ensure quality of living remains the same for those left behind. 

Life insurance is commonly used to cover things like debt and mortgage repayments - which could mean your family don't need to move out of their home. Life insurance can also be used to provide your children with an inheritance.

What life insurance is best for families?

There are a few different levels of cover that come with life insurance, and knowing which would best suit you can help to understand what cover is needed and the premiums you'd pay. 

Term life insurance means you pay your premiums and have cover for a set limit of time, this is usually 10, 20 or 30 years. Whilst it can be cheaper, it does mean that the policy will only pay out if you die during the policy term.

Therefore, you may not even use the policy and would need to potentially look at getting more cover once it ends. It may be the most beneficial, however, if you have a mortgage to pay off and need cover during that time or maybe for education fees.

Whole of life insurance offers lifelong coverage and does not expire, assuming you continue to pay the premiums.

It is designed to protect funeral costs, inheritance tax liabilities or simply to leave some money to loved ones when you pass.

Whilst premiums may be more expensive, it does provide the ultimate peace of mind that when you pass away, your family and loved ones will have financial security and protection.

It’s worth considering what cover is most important to keep your family afloat and what is manageable for your current circumstances.

Additional protection options

You may also be aware of other insurance products that compliment life insurance for families, such as critical illness cover and income protection. 

Critical Illness Cover

Where life insurance pays out if the policyholder was to pass away, critical illness cover focuses on providing financial support if you were to become critically ill. The policy will have a list of illnesses that the insurer covers.

It can be a good safety net if you don’t have savings or employee benefits that would cover you if your life changed due to a critical illness. It’s paid out as a lump-sum payment and could provide peace of mind for you and your family.

Income Protection Cover

Income protection cover is different as it covers your income particularly if you’re unable to work.

Where critical illness cover is a one off lump sum payout, income protection continues to cover you whilst you can’t work and can pay up to 70% of your monthly earnings.

If you have monthly outgoings and don’t have indefinite sick pay from your employer, or enough savings to keep you going, income protection is a good alternative.

UK life insurance providers

There are a number of life insurance providers in the UK, and Usay Compare is proud to work with some of the leading life insurers. Some of these include: Aviva, Legal & General, Guardian, LV, The Exeter, Vitality and Zurich.

Usay Compare can help by comparing quotes to find the best policy at the best price for you.

How to find the best life insurance policy

With many options available, different levels of cover and different insurers, it can be hard to know where to start. Starting your journey with a life insurance intermediary, like Usay Compare, can simplify the process for you.

Our team of expert advisers will be able to offer a free, no obligation consultation. They’ll learn about your needs, requirements and budget and help to find a policy that best suits you at the best price possible.

They’ll also be able to help you understand the full ins and outs of your policy, so you're confident in knowing exactly what you're covered for.

Whenever you’re ready to find your policy, our advisers will be ready to support you. You can fill out a quote and await a call from our team or get started now and give us a call on: 01285 864670