Life insurance for mums

Becoming a mother is one of the largest changes in a woman’s life. With a whole new little life to care for, it can be unthinkable to imagine the worst happening. Part of taking on the responsibility of parenthood is taking care to ensure your children are cared for should you no longer be around. Planning for an unknown future can be daunting but taking out life insurance for parents is a simple way of ensuring your little one will always be cared for, should the worst happen.

What is life insurance for Mums?

Life insurance provides financial protection for your loved ones when you die. It offers peace of mind by ensuring that loved ones are financially supported during difficult times.

This financial support can help cover expenses such as:

• Mortgage payments
• Household bills
• Childcare costs
• Education expenses
• and any other financial obligations your family may have.

How much life insurance do I need?

Life insurance is a wise investment to ensure that your family can maintain financial stability if you pass away. The appropriate policy can help them stay in the family home, cover bills, and continue the lifestyle you have planned for them, including participating in activities, clubs, and pursuing higher education.

The amount of life insurance you need is influenced by your salary, financial obligations, and any existing savings or other family income, such as your partner’s salary. Consider that if something happens to you, your partner might choose to leave their job to dedicate more time to family life.

If you have death in service cover through your employee benefits package, this typically provides between 2-4 times your salary. You may want to supplement this with additional life insurance to ensure your family can manage without your income.

Types of life insurance for mums

Level-term life insurance

When you take out a level-term life insurance policy, you specify the amount your beneficiaries will receive upon your death. This payout amount remains constant for the duration of the policy, and your premiums typically stay the same as well.

Decreasing-term life insurance

Decreasing term life insurance provides a lump sum payout to your family but throughout the length of the policy the sum decreases, which makes it an ideal type of life insurance for covering a repayment mortgage.

Life assurance

This is slightly different from the other two types of life insurance above. It’s also known as whole-of-life insurance, as this policy will pay out a lump sum upon your death and doesn’t have a set term for the policy.

Joint life insurance

Joint life insurance is designed to cover you and your partner in case one of you dies. A joint policy will typically cover two lives on a “first death” basis, where the insurer will pay out a lump sum on the event of the first death in the couple, but won’t provide a second payout.

Find the right cover

Life insurance for working mums

You may already have life insurance as part of your employee benefits package. Sometimes called death in service insurance, it’s designed to provide a payout for your family in the event of your death, which needn’t occur at work for the lump sum to be paid. You might find, however, that taking maternity leave, reducing your hours on your return or taking a career break has an impact on your staff benefits and that you need to look into additional life cover. You might want to increase the sum insured to take into account any potential earnings had you not had a baby, or to factor in the cost of your additional contribution to the home in terms of childcare.

Life insurance for self-employed mums

As a self-employed mother, the financial responsibilities of supporting your family or contributing to household expenses can be particularly challenging, especially without the safety net of employee benefits. Life insurance for self-employed individuals can serve as a vital resource, ensuring that your family remains financially secure and able to cover any outstanding expenses, loans, or invoices associated with your business. In addition to providing a tax-free lump sum, this insurance can offer your partner or adult children the financial means to continue operating the business if they choose, thereby preserving your legacy in multiple ways.

Life insurance for at-home mums

At-home parents often believe that they don’t need life insurance as they are not bringing in an income, but this could put their family at risk financially if they were to pass away, since stay-at-home mums do valuable work in raising their children.

The contribution to the home made by a non-working parent adds up significantly. Recent research from our partner, Scottish Widows, found that, on average, mums spend almost 23 hours a week on housework and chores, including cooking, helping children with homework and doing the school run, as well as laundry and cleaning.  In the event of your death, your partner or another relative might have to give up work or reduce their hours to take on these aspects of family life. Having the right life insurance in place can help to replace their income until the youngest child leaves home, giving your family security when it’s most needed.

Life insurance for young mums

If you become a mum in your teens, 20s or 30s, you might feel too young to start thinking about life insurance. In fact, the younger you are when you take out a policy, the better. Buying life cover at this age can prove considerably cheaper than if you wait until your 40s or 50s as, the younger you are, the lower the premiums tend to be.

The cost of life insurance is calculated on a number of factors, your age being one of them. After the age of 30, you’re statistically more likely to get a range of conditions such as high blood pressure and cholesterol. Other factors that can reduce your premiums include stopping smoking and taking regular exercise.

Life insurance for couples

Whether you’re a solo mum or in a couple, you can take out single life insurance or joint life cover. Joint life insurance can often be cheaper than taking out two policies and can reduce the amount of paperwork. Remember, however, that it only pays out on the first death, leaving the surviving parent in need of a new policy. A joint policy can also take some untangling should you separate or divorce.

Life insurance for single mums

If you're raising your children as a couple, opting for a joint life insurance policy with your partner is often the preferred choice. However, as a single parent, securing single life insurance ensures that your children are adequately supported in the event of your passing. For single mothers, it's crucial to create a will and engage in discussions with your extended family about the future, ensuring that your children are raised according to your preferences and wishes.

Why compare life insurance for mums with ActiveQuote?

Purchasing life insurance may seem overwhelming, but we recognise the importance of finding the ideal coverage for you. Our commitment is to support you through every step of the process, ensuring you feel confident throughout the process. While our policies are user-friendly and accessible for online purchase, our focus on exceptional customer service means our knowledgeable team is on hand to address any inquiries via phone. With our high customer satisfaction rating, you can rely on our expertise and steadfast dedication to ensuring your peace of mind.

With ActiveQuote you can:

• View more than 50 quotes online
• Compare the UK’s leading insurers
• Tailor your quotes online with live price updates
• Get free advice from life insurance specialist

To find the best life insurance for you, use our online comparison service or call our team on 0800 862 0949.