Why young families need life insurance
When you have children, your income becomes the foundation of their security. If you or your partner were to die, the surviving parent would face mortgage payments, childcare costs, school expenses, and day-to-day living — all on a reduced income. Life insurance provides the financial safety net to make this manageable.
How much cover does a young family need?
A common starting point for families with young children:
- Enough to clear the mortgage — so housing is secure
- 10 years of the lower earner's income — to replace what's lost and cover childcare
- Additional cover for the primary caregiver — even non-earning parents provide economic value (childcare, school runs, etc.)
Level term vs family income benefit
- Level term — pays a lump sum on death. The family receives all the money at once.
- Family income benefit — pays a regular monthly income until the end of the policy term. Often better for replacing ongoing income for families with young children.
Should both parents have cover?
Yes — even if one parent doesn't work, they still contribute enormous economic value. The cost of replacing childcare, school runs, and household management is significant. Both parents should have life insurance and ideally critical illness cover too.
Frequently Asked Questions
As soon as you have dependants — ideally before or when children arrive. Premiums are lowest when you're young and healthy.
Two single policies usually offer better value and more flexibility than joint life insurance, as each policy pays out independently.