Life insurance for new parents

Why do new parents get life insurance?

When you start a family, you enter an exciting world of new experiences and responsibilities. It may also get you thinking about what would happen if you weren’t able to support your family in the future.

Everyone’s situation is different. So here are some thoughts to help you get started with thinking about life insurance, before talking with us.

How can life insurance help a family?

Life insurance could be a way to protect your family’s financial security. It’s there as a backup plan, should an unfortunate event come along to disrupt your plans. It can be reassuring to know it’s there should the worst happen. There are different types of life insurance that may help you and your family. For example:

• Life cover can pay a lump sum if you or your partner die, or are diagnosed with a terminal illness and are given less than 12 months to live.
• Trauma cover can pay a lump sum if you’re diagnosed with any of the specified conditions defined in your policy, such as Alzheimer’s disease, Multiple sclerosis, a stroke or cancer. For some conditions cover starts 3 months after you’ve taken out the cover.
• Income and mortgage protection both can pay a monthly income for up to the period selected if you can’t work due to sickness or injury.

What about life insurance for solo parents?

Solo parents may need life insurance even more since they’re likely the family’s only source of income. If you’re raising a child on your own, how would you get by if injury, sickness or something worse, affected your ability to earn an income?

How much cover do you need?

We can help you work out the amount of cover you might need to provide for your family in the case of sickness, disability or something worse. This usually involves thinking about how much money you or your family might need to survive if the worst happened. It also considers future financial needs.

Can you get life insurance for children?                    

Children can’t get their own policy until they’re 16, but parents may be able to get some cover for their children under their own policies.