It’s never nice to think about the unthinkable, but sadly, death is the one inevitable thing we all face. Hopefully, it’s a long way off, but this doesn’t mean we shouldn’t put a financial safety net in place to lessen the financial trauma such an event brings.
Planning for their future
Every parent knows the importance of planning ahead; from the new school shoes, to your little one’s education, you want to fill their future with hopes and dreams. Yet are you one of the 80% of adults here in the UK that has no life cover? If you’re nodding your head, this could mean if you’re the main breadwinner and if you stop earning, they’ll be nothing to replace this income.
Being in the know
Don’t panic, if you are in this 80%, this is an easy situation to fix. All you need to do is work out how much you’d like your family to have, taking into account your salary and multiplying this by ten (as a general rule), add your outgoings, including debts and potential future costs, and then decide how long you’d like to have the cover for. You may be planning on extending your brood, so be sure to factor this in.
You’ve got two different options; you can buy level term cover which is for a fixed period and pay a set amount, or you can buy whole life cover which doesn’t run for a fixed term, so lasts as long as you do. Something to bear in mind when you’re budgeting; level term enables you to control the premiums and cover period, so this option tends to be cheaper than the whole life cover.
It’s much simpler than it sounds
One thing a lot of parents don’t have to spare is time! If you’re struggling to sit down and sort out your life cover, financial planning firm Lemonade Money is here to help. Their online tools make the process easy; they have a life cover calculator so you can see exactly how much cover you need and their website shows you the top three quotes for your circumstances. There’s also a free and quick financial health check so you can see where you’re at financially and if you need extra support, Lemonade Heroes can help you get your finances on track.