FAQs: Your questions, answered by our friendly team
Are some life insurance policies better suited to mums than others?
Again, this all boils down to individual circumstances. There are four main types of policy available, which we’ll explain below, and the one that’s perfect for you might not be the best choice for any other mums at the school gate. That’s why it’s so important to talk it through with a member of our friendly team, who can make sure you’ve got all the information at your fingertips to make an informed decision.
What if I have another child – can I increase my life insurance cover?
You have a couple of options here. Some life insurance policies include a ‘special events’ option which lets you increase your cover without having to fill in more medical questionnaires. It’s something to look out for when reading the T&Cs of your policy, especially if you’re hoping to grow your family in the near future, and/or move into a larger property.
The other option, of course, is to cancel your existing policy and apply for a new one, although that will mean going through the application process again. Depending on your age and health, the premiums might not be as favourable as your first policy.
When any big life changes happen it’s always sensible to tell your life insurance provider. They might be able to offer new options and, at the very least, keep your records up to date.
Can I get life insurance whilst I am pregnant?
It’s understandable that you might want to sort out life insurance before the baby is born, when you’d rather be basking in the glow of the new arrival than scrambling to secure decent cover.
Getting insurance when you’re pregnant should be straightforward. If you’re in good health and the pregnancy is progressing well, your policy could start immediately. If there are complications or you have a pre-planned C-section, however, some providers will postpone the application. That doesn’t mean you’ve been declined – just that you may have to wait a little longer before your life cover kicks in.
Can single mums get life insurance?
Yes! As a lone parent, your biggest worry may be the potential financial hardship your children could face if you were to pass away.
Having life insurance is a must for parents who are the only source of financial support for their children, granting peace of mind and stability as they raise them.
What happens if I take out joint life insurance and my partner and I divorce?
If you and your partner take out joint life insurance, it’s important to know what happens if you get separated or divorced.
Many policies offer a separation option that allows one policyholder to take over the other’s share of the policy if they divorce or separate. In this case, you don’t have to cancel the policy – you can just let your former partner be responsible for their own part of it.
You can also cancel and replace your joint life insurance with seperate policies.
What else should mums think about when taking out life insurance?
You’ll need to decide whether you want a single policy or a joint one. A joint policy is usually more affordable than two single policies, but it only pays out on the first death. It means the surviving partner might have to take out another life insurance policy later and, if they’re considerably older by this time, the premiums will likely be less favourable.
Another potential snag with joint cover is that, unless you make other arrangements, the money will go to the surviving policyholder rather than directly to your children. And give some thought to what would happen if you were to separate from your partner, which can sometimes cause complications. Not all providers will allow a joint life insurance policy to be signed over to just one party. With two single policies, by contrast, it’s often just a case of changing the name of your beneficiaries if he or she was listed as one.
You should also consider how long you need life cover for. For most mums, this will be until their kids are financially independent, but that age can vary between families – for example it will probably be later if your kids want to go to uni. Or maybe you only need it until you’ve paid off the mortgage, so your children won’t have to move home.
How much will mums pay for life insurance?
You can find life cover for as little as 17p a day*, but your premiums depend on a whole range of factors.
Gone are the days when women paid less than men for life insurance, but you can still get favourable rates if you apply at the right time and choose a policy tailored to your age and lifestyle.
Typically life insurance is cheaper the younger you are when you take it out, as you’re likely to be in better health and so less of a risk in insurers’ eyes. You’ll also secure better premiums if you’re a non-smoker.
* illustrative price based on a 30yr old, non-smoker, £100,000 level term cover, over 25yrs, no medical conditions