Four in ten parents with children under 18 have no life insurance according to research by Legal and General.
And whilst a fifth say that’s because they don’t think it’s necessary, almost half say they just can’t afford it.
This survey really struck a chord with me this week.
That’s because I have been there. I have been that parent with no life cover. Because when my husband died, leaving me as sole provider for my 14 year old daughter, I discovered he didn’t have a life policy to protect us.
What does that mean? It means we were faced with moving house. Immediately. We couldn’t afford to stay where we were. It meant relying on benefits, or working day and night to make ends meet.
And we did cope, of course we did. But I can tell you from bitter experience that the lack of support at the lowest point in your family’s life, is a big blow.
Life cover protects you from the mundane, financial implications of losing a partner. If you have a mortgage, you have to have life insurance, but if you don’t – you’ll find yourself in my position. The sole breadwinner, the sole carer, the one with all the bills but no bread-winner. I wouldn’t wish that on my worst enemy.
So here is my best advice to get life insurance for your family, even if you are worried about the cost.
- If you’re young – start right away.
Life policies get more and more expensive as you get older, so it actually works out cheaper to start a policy whilst you’re young. Your monthly premiums will be much lower, for life, as the policy cost depends in part, on your age when you take it out.
- If cost is an issue, consider a joint policy
Joint lives, first event cover is one policy which covers both you and your partner. The cost is therefore less than two separate policies and will pay out on the first death, whomever that may be.
- Budget for it
It’s not something we like to think about but do take it seriously. How would you cope if the main bread-winner in your family suddenly wasn’t around any more? Who would earn the money and who would look after the children? Could you even afford the funeral? Life cover is something that really should be squeezed into the monthly budget – even £20/£30 a month will buy you something to protect your family.
- Get covered, and upgrade when possible
If you don’t have much spare cash now, just start with the basic cover. You can always upgrade or take out further policies when times are easier.
- Don’t forget to update your policy
Finally, it might be a life policy but it does need to keep up with your circumstances. If you remarry or have more children, check you know who’s covered. The reason I was left without cover is because my husband’s life policy was left to his ex-wife following some bad legal advice. It’s vital you keep your insurers up to date with your family situation and your intentions.
Finally, don’t be intimidated by the cost or complication. I specialise in finding cover to suit everyone. Give me a budget and I will help you find some level of protection to help you sleep more easily at night. Plus, my advice is free, with no obligation to buy. If you don’t have life cover, perhaps think about calling me on 0800 690 6990. I’d love to help families avoid my situation.
PS If you’re worrying about how to afford these policies, please give me a ring. There’s always a way to save costs when budgets are tight but ensure you still have some level of cover. Take a look at our Life Insurance, Critical Illness and Income Protection pages for more background but I can explain everything over the phone and help you find a way to cover your family.