Why Life Insurance for mums matters
Life Insurance for mothers is about a more peaceful mind, especially when considering the uncertainty ahead. It can make a huge difference to your children, where the emotional hurt shouldn’t be worsened by the thought of added financial pressure. A mum’s labour is more than an act of love, but an economically valuable role in-and-out of the family fold.
What does Life Insurance for mums actually mean?
Why insuring motherhood matters – precisely because mothering is no ordinary chapter in your personal history. Rather, motherhood reads like a story. It can feel like a drama about emotion, its highs and lows. Or one about finances. It can even seem, at times, like a comedy. It could be a lazy Sunday morning early in March. Then, again, it could be a late night of worry on a weekday tasking through homework.
Yet, for most, motherhood is about warmth, hope and reward.
Estimations fall at 60% when predicting the number of households with dependents where mothers aren’t under some kind of life cover or protection. That can feel reckless when every 22 minutes a child is left parentless in the UK. Where hatching new financial plans, especially when securing sensible protections for your loved ones, Life Insurance becomes a priority for any home.
How does Life Insurance work?
Even with the jargon cleared away, there are still key terms that appear in any policy – and owning these can really empower you to fully take charge of your Life Insurance policy. These definitions will unlock your policy in rewarding ways.
What is a “term” in Life Insurance?
In short, your term defines how long your policy is active for – usually for a set number of years. For term-based insurance, where this is most common, the term will describe your period of activity for a policy, or the time you have to make a valid claim.
What is my “sum assured”?
Life Insurance is the most popular, if casual, way of looking after something of value. It’s actually designed to protect your loved ones against types of death – usually in the form of a financial benefit that gets left behind. This money, secured in your policy, is called the sum-assured. You will have to nominate this amount when you activate a policy.
Who needs Life Insurance anyway?
Often driven by falsehoods, life cover isn’t just there for the spouse who secures a regular income for the family. As a matter of fact, the financial values of other people within the family unit can often feel invisible. We call this the hidden economics of parenting, where we want to avoid a mother’s input feeling understated or blurred against the backdrop of busy parenting.
Securing the family, by establishing a financial future for your children, isn’t a task for one. Rather, it should be an influential chapter in your wider family project.
And, what’s more, families come in all shapes and sizes.
Motherhood reads like a story
A mother’s lifestyle happens all around her. In these moments, the little things, they add up. Her value, both emotional and financial, isn’t something to take for granted.
So, why not insure all of the little moments with life cover?
As one of the toughest jobs, motherhood is a story of meaning, a journey so very personal. They are central, if essential, figures in the fold of the family, and their loss will impact the lifestyles of those around them – their partners, children, and wider family. Why, then, are more mothers not insured?
Why does it all matter?
One of the big incentives for a life policy is the urge to look after your children.
As children age, new challenges bloom in the landscape of parenthood. These differ from ‘teething’ issues, the smaller rebellions that naturally phase out, to larger morals about parenting. And, with each new phase, life events come to shape the personal story of your family.
These are the formative years that inform the early identity, or development, of your child. Toddlerhood, and general infancy, define this time, which too easily passes by. The destination is early education, but the journey there isn’t always straightforward. Teething issues, lovingly addressed by new parents, can range from new behaviours to pre-school and costly child-care. For a mother, early is both literal and figurative in meaning. Routine child-care is taxing, both as an emotional task and as a financially demanding one. This is a starting point for thinking about the mother’s economic contribution – what, exactly, would the family do without you?
Finding your rhythm becomes easier: learning new wisdom from the lows, relishing in the highs. It’s an education for them, and for parents. New social experiences open their world up beyond the familiar walls of the family home. These are the first steps in their formal education, too. As the scenery changes, new demands will follow. Motherhood is a pillar in the home, and beyond it.
This is another period of remarkable transition, from the comforts of primary education, now a familiar scene of close friends and peers, into more tertiary forms of learning, as young adulthood isn’t so far away.
Mothers have historically been a role-model. And their value, no longer in self-doubt, becomes a truth about their financial and emotional contribution to the family unit.
But parenting teaches us that there’s no single style to it. Try our “portraits” to browse a quick snapshot of the types of mums we help protect.
- at-home mums
- working mums
- single mums
- new mums
- expecting mums
Life Insurance for at-home mothers
Life cover isn’t only there for those who bring home an income. That’s just a myth!
If an at-home parent were to pass away, the family would struggle both emotionally and financially. The contributions of a mother are all too easily forgotten, especially within the busy family setting. That’s perhaps why not enough women are purchasing Life Insurance.
There is an estimated one-third of mothers who stay at home.
Indeed, life cover is a safety net that helps to limit financial stress. A pay-out could clear away any large debts, like a mortgage, or provide a steady income, or offer up an inheritance. Essentially, it could secure the lifestyle of your family.
Take away the guesswork and embrace our smart toolbox we’ve created for at-home mothers to calculate what their working salaries would be. We want you to have a clear picture of your financial value in the family – motherhood is a tough job, why not feel like you’re getting paid for it?
Life Insurance for Working Mothers
Motherhood may feel at odds with the working world. A lot of mothers negotiate the daily struggle of a home life and a professional identity. Both are timely commitments. Finding adequate energy to attend to both ends, to satisfy both jobs well, is tough – tougher than it should be. And with numbers growing stronger, a report at The Guardian discovered, more mothers are entering into the workforce with every passing year.
A mother’s financial value is more easily defined here, and so the costly impact of their loss on a family would be deeply disruptive, if emotionally painful. The same debts, the mortgage, and the daily expense of living would be hard to pay-off without your input. To this end, you should consider not only your own working salary, and any changes to it during the policy, but also the habitual costs of your family’s joint lifestyle. An accurate cover makes for a better one.
Life Insurance for Single Mothers
There are all kinds of mothers, but they all fulfil the same job: a shelter, a friend, a counsel, a warming touch. A single mother brings a lot of value into her family. If she’s the sole income-provider, she becomes the only financial help for your family. Covering yourself means that your family can avoid the upheaval of losing their lifestyle standards and can secure them against financial upset.
According to a study inThe Telegraph, less than a third of households with single parents are secured with Life Insurance. This worrying picture of the modern family shows how some are likely to skip out on life cover, leaving their dependents at great financial risk, if troubled by lacklustre future planning.
Many don’t envision life cover as an essential within their routine budgets, especially when it feels like an invisible product. Yet, life cover can be affordable, again. Comparison sites like Think Life reach across the whole of the market to seek out the better deals for you.
Life Insurance for New Mothers
In the story of motherhood, the first real, if exciting, life event is the birth of a new-born child. Their general wellbeing becomes a priority, and this includes their financial options. Having an insurance policy is the reassurance that they will have financial security should anything happen.
Young mothers will have a lot of competing expectations, so locking in a policy early on is a good first step toward protecting their financial wellbeing. As a general rule, the better your health, the cheaper the rate. Prompt, responsible financial planning is a near-essential in the early days of motherhood – and we’re here to help hatch sensible plans.
Life Insurance for Expecting Mothers
Thinking through all of the larger considerations for your family-to-be is a mentally tough load. That’s why many mothers arrive at the conclusion, sensibly, that life cover is an essential safety-net, if not a contingency, should anything happen. Similar to other types of mothers, life cover is about financial assurances, and it usually follows the same thinking. You’ll need to decide the length of time you’d like to be covered for, and what it is exactly you want protection against. Your rate will reflect this.
In certain scenarios, such as if there are any complications, the provider may opt to pause your policy until after the pregnancy has safely resumed. Likewise, planned Caesarean deliveries may temporally halt your policy. You should expect to be asked about your weight, prior to pregnancy, in order to craft you a truly suitable policy. Getting to know you – your lifestyle – improves your odds for finding that right cover.
What about having more children?
Just like all major life events, consider how new changes to your lifestyle might impact your financial situation, and whether you’ll need to adapt your policy. In certain instances, the sum assured can be altered to reflect big life changes, such as welcoming new children into the family, or moving to a bigger house. Protection should fit comfortably to cover your lifestyle expenses. Be aware that alterations to your policy, especially if scaling up your required protections, will impact the monthly premiums.
What matters most is having adequate coverage secured for your lifestyle – and those it involves (even if your family is soon to grow).
How can mums get smart with their cover?
Life cover isn’t universally sized. Rather, it’s a practical and responsible plan that keeps your family safe – getting ‘smart’ is as simple as staying knowledgeable on your policy options and scoring big on the opportunities through comparison engines the likes of Think Life. Because knowledge is power.
As life cover is a bespoke purchase, it’s also affordable, or shaped to your budget, and can be fixed against a term that you feel comfortable about.
What is Critical Illness Cover?
Did you know that only 13% of mother’s have a Critical Illness policy?
This cover type can help to limit the financial pain on your family if you were to be diagnosed with a critical illness. As an additional cover option, Critical Illness works by securing your finances if you need time away to focus on recovery.
Discover the benefits of Critcial Illness Cover here.
What is Income Protection?
The statistic likelihood of injury or illness in the UK is high, with an annual average quoting about one million. By default, you should ask yourself: would my family survive on my savings alone? Work may offer sick leave, too. But can that compensate for the possible financial impact of losing a routine monthly income?
Income Protection insurance provides you with some cover should you become unable to work, ensuring that monthly bills are covered, and your lifestyle can resume without delay.
What types of Life Insurance are there?
We’ve got the essential reading on the most common insurance policies for mothers in the UK:
Or, a policy type that lowers the repayment amount over time, as the debt itself shrinks. Usually this policy type corresponds with a loan the likes of a repayment mortgage.
On application, a policy like this starts with a specified payable amount and declared term length (over which the policy is covered). The sum assured remains steady at the same value over the course of the policy. This would offer up your loved ones a fixed lump sum should anything happen to you.
The major difference between Decreasing term and Level terms insurance options is the outcome or pay-out sum. Where a level term type holds its pay-out value, a decreasing term reduces its payable sum throughout the policy as the debt shrinks.
If you are looking to secure yourself against a large lifetime loan like a mortgage, then knowing what the market offers could save you money. Mortgages against Life Insurance are normally divisible into two categories: interest-only & repayment.
- Interest only Mortgage.
Payments are taken out against the interest that accrues on a loan, rather than the property’s value.
- Repayment Mortgage.
Repayments are required against the loan to gradually pay-off the value of the property.
When hatching plans that sensibly secure your assets, ensuring that debts are tied up if the worst should happen, you should consider all of your options. A policy should reflect the nuances of the family it serves to protect.
How much does Life Insurance cost?
Typically, Life Insurance is calculated against your potential risk. And the greater the risk to the insurer, the higher the premiums.
Certain key factors can inform the outcome of your premiums:
- The length of the term.
- The level of cover.
- Medical history.
Being proactive about your cover means being adequately researched and reaching optimistic expectations.
How much Life Insurance do I need?
Broadly, the amount of cover you require is reflected in what you wish to protect.
To understand this, you should calculate how much – as a financial value – your family would need to maintain its lifestyle. This numeric value should consider your existing debts and all necessary outgoings. Thinking prudently about your finances, it’s not only a matter of what you have loaned, but what you can reasonably afford. You should consult your monthly budget, if you don’t already have one. Ultimately, these considerations will look into your health, and general wellbeing, and then your wealth, or your financial options.
What is joint-term insurance?
In the early throes of crafting your ideal policy, you’ll be asked who the cover is for – just yourself or yourself & partner. Just like with the single mothers, polices can be secured against single parents looking to protect their families, dependants, or loved ones. If you’re opting for cover that includes your partner too, then this is called joint Life Insurance cover.
Knowing beforehand the particulars of your cover, by understanding how it can be bespoke to your lifestyle and those it involves, is a good starting point. One of the near-essentials is ask who the cover is for.
How long do you need Life Insurance cover?
For mothers, there are two metrics that can be used to define the ideal length of your policy.
- Your child’s age
- The length of our mortgage term
You could, if using your child’s age, determine a suitable length of cover by deciding how long until they would become financially independent. The goal of life cover is to secure the financial wellbeing of your family.
It’s worth, at this point, referring to the stages of your growing child, to determine, if accurately, the expectations your child might have against your financial and emotional resources. For example, knowing how mothering cuts back on costly child-care bills. Or, for example, how a child moving into later education, post-secondary, might be less financially independent, and so not entirely prepared for any changes in their lifestyle.
When should I get life cover?
There are no exact ideals when figuring out when to secure yourself with good cover. But there are the typical examples, key life moments that, universally shared, make us realise some need to think and plan for our family – be it the one we already have, or the one we wish to welcome.
We insure for the key life moments:
- Having children, and therefore dependants
- Buying a new property
- Hatching safe financial plans, especially when putting in place contingencies
- Getting married, or living with your spouse or partner
Made lovingly for Mothers
A policy is a tailor-made article. Usually, the mothers who feel safest with their policies are the proactive ones – or the ones who cosy up to the peace of mind that comes with feeling covered.
Why should mums get life cover?
Perhaps the most persuasive reason why mothers insure themselves is a loving, if unselfish, motivation: to look after their family. Life cover is a helping hand – knowing that, if anything should happen, your family can be spared from financial woes.
Tackling Misconceptions about Life Insurance
Life cover is often tangled up in myths. Some fear that it’s unaffordable. Whilst others have succumbed to falsehoods that it’s non-essential, and that their life plans don’t need backing up. Yet, we call them myths for a reason. Comparison engines like Life Market have a greater amount of access across the whole of the UK Market, so securing an affordable and timely rate has never been easier.
Insurance for Mums at a glance:
- Life Insurance starts with savvy financial planning.
- A life cover policy is a bespoke purchase.
- Cover can be managed under your budgetary requirements.
- Your life cover should reflect any changes to you or your family’s lifestyle, especially in the case of life events.
- Comparison sites like Life Market offer you a better shot at accessing top rates.
Where can I buy a policy?
Affordability isn’t an impossible quest. It’s a matter of balance – between your budget & goals.
Not every policy is built the same. And so, not every price tag reads the same either. That means comparing the market can help you match up with deals that actually work with your budget and goals.