05 Dec Life Insurance For Mums
Life Insurance For Mums
- Sagar Joshi
- 05/12/2022
- Read Time: 3 Minutes
Why is life insurance important for single mums?
As a mother, your top priority is ensuring the safety and well-being of your children. While it may be difficult to think about, it’s important to consider what would happen to your family if something were to happen to you. Life insurance can provide peace of mind knowing that your loved ones will be financially supported in the event of your unexpected passing. As a central figure in your family’s life, your absence could significantly impact their lifestyle, but life insurance can help ease the burden during a difficult time.
How much cover do I need?
The amount of cover you need is based on your situation. The way how we calculate the amount of cover you need is by taking a look at your expenditure and working out how much your children would need to live the same lifestyle that you provide for them until they are financially independent.
However, sometimes the amount of cover may be significantly high meaning the monthly premiums could be out of budget. That is why we always try to create a balance between what is needed to protect your family and also something affordable for your situation.
What type of life insurance do I need?
Decreasing term insurance:
Decreasing term life insurance is frequently linked to repayament mortgages. The pay out covers the outstanding balance of your mortgage if you pass away.
These policies frequently have lower premiums than level term or whole life policies.
Level term insurance:
Level term policies pay out the same amount regardless of when you die, as long as you pass away during the policy term.
This type of cover is for interest only mortgages and also provides a safety net for your children until they are financially independent. It is important you have this in place especially if you’re a single mum. This ensures that your children can live the same lifestyle that you provided for them until they are financially independent.
Whole of life insurance:
Some mothers want to ensure that their children receive a pay out regardless of when they die, not just during a specific term.
That is why some people decide on a whole of life insurance policy. This policy is usually used to help pay for funeral costs, as the maximum amount of coverage is £10,000.
Can I put my policy in trust?
All policies are eligible to be in trust.
People choose to write life insurance in trust to decrease the likelihood of having to pay inheritance tax.
This is due to the fact that your insurance is not considered part of your estate. Another advantage is that you avoid the probate stage. This essentially means that your family will receive their money sooner.
How much is life insurance for single mums?
The cost of life insurance for single mums depends on a variety of factors:
- Your age
- Your health and BMI status
- Whether you’re a smoker
- The amount you want the policy to pay out
- The term of the policy
These factors are what insurance companies look at to determine what the premium should be.
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