We know you can't fully prepare for losing a parent and no amount of money can take away that loss. However, ensuring financials are taken care of for your children means you are still able to protect the important milestones in your children's lives.
Like any Life insurance policy, what type you need will depend on your circumstances. Mum's can use life insurance as a financial safety net should they pass away and a lump sum pay out could help to ensure for example, that an existing mortgage could be paid off.
Making sure your mortgage is paid for can help your family if you were no longer around. They could remain in their family home without having to worry about covering the cost or selling the house.
Decreasing term cover is often used for protecting a repayment mortgage. This is because the amount of cover that you take out initially, reduces over the term of the policy and can be aligned to the amount you have borrowed and the term of your mortgage.
Again, there is no right or wrong answer to this question. The level of cover you choose will depend on what it is you are looking to protect and what's affordable. For example, if you want to make sure you don't leave behind any outstanding debt for your family, you may want to consider a level of cover that matches this amount. Similarly, if you want to ensure your mortgage and home are secure for your family and paid off, then you might want to consider a cover amount in line with your mortgage amount.
Some parents will use Life Insurance to try and make sure that their family have their living costs covered too. It can be tricky to work out an exact figure, but you could think about family living costs such as rental payments, household bills and day-to-day expenses like food or school bills.
Working out how long your policy should last for is entirely up to you. To ensure you are covered for what you aim for, think about what scenario you are trying to protect against. For example, do you want to cover yourself until your children have finished their full time education? Putting provisions in place, so that if you were to pass away then your children can remain in the home or be looked after until they are able to become financially independent may also be a driving factor.
Interested in knowing more about how to protect your family with Life Insurance, or how much it will cost? We can help you get your free Life insurance Quote now, Click Here.