Life insurance for mums
As a mum, you want what is best for your children. You want to support them, encourage them and ultimately ensure they have the best life possible. One of the main ways you can do this is by setting up a life insurance policy to make sure your family is always provided for – whether you are there or not.
There are many events in a person’s life that may prompt us to think about life insurance. Some of these include:
- Buying or renting a home
- Becoming a mum
- The loss of a loved one
But you don’t have to wait for a major event to take out life insurance. With iam|INSURED, it is a quick and simple process for us to help you find the right policy to suit the needs of yourself and your family.
Why should I as a mum take out life insurance?
As a mother, you are one of the most important figures in your family’s lives. You are completely central to their world. It would make sense for you to be concerned as to what might happen if you were no longer around.
There are plenty of reasons why you may want to take out life insurance. You want to make sure that in the event of your passing, your family is taken care of – without the worry of additional financial pressure.
You may for example:
- Have outstanding debts: debts such as a mortgage that still needs to be repaid, credit card debt, finance payments for a car etc.
- Want to cover the cost of childcare: you may want to be sure this cost is taken care of so that your partner or family do not have to worry about this.
- Want to cover the cost of your funeral: this would be another financial worry taken away from your family at an already difficult time.
What’s the cost of raising a child in the UK?
Currently, the estimated cost of raising a child to age 21 in the UK has increased by 63% since 2003. This increase equates to £2,000 per year which on average is almost double the rate of inflation.
The cost of a child in 2019:
- £151,000 for two-parent households*
- £185,000 for single-parent households**
We also need to consider that a child loses a parent in the UK every 22 minutes – which equates to an unbelievable 23,600 per year. So, it is important to make sure that they are still provided for in the event that this happens.
How much does life insurance for mums cost?
Depending on the provider you go with and any pre-existing health conditions/other factors, the price of life insurance can vary from person to person.
Any provider will ask questions about your health and lifestyle such as asking for details on any medical conditions, smoker status and alcohol intake as examples. What we will say though is the price may be surprisingly a lot cheaper than you think.
According to a recent survey, the majority of UK adults estimated that life insurance costs were 4 times higher than they actually are. This means that for way less than the price of your weekly shop, you can assure your children are always taken care of.
Can I get life insurance if I am pregnant?
The short answer to this is yes! Pregnancy does not affect the process of applying for life insurance, it is the same as applying during any other period of your life.
As with any other life insurance application, you will be required to answer questions about your general health and lifestyle. Occasionally, pregnancy could cause medical issues, e.g., gestational diabetes. This theoretically could affect the cover offered to you – but pregnancy alone is not a reason for an insurer to decline cover or raise the price of your premium.
It is possible though that some providers may put your application on hold until after the pregnancy if you are experiencing pregnancy-related conditions, so it is a good idea to shop around for the right provider for you.
With the exciting thought of bringing a new child into your life, it completely makes sense that you would want the reassurance of knowing all your future plans are covered – and that your family’s well-being is secured for many years to come!
FAQs about applying for life insurance while pregnant
When finding out you are pregnant, you will have a lot on your mind. The last thing you want to be doing is searching through the internet for information on how your pregnancy may affect your life insurance application.
With this in mind we have rounded up a few frequently asked questions and answers to help put your mind at ease.
I already have life insurance – do I need to tell my provider I am now pregnant?
No, you are not obliged to disclose your pregnancy to your insurance provider and your policy shouldn’t be affected by this. You will though have to disclose your pregnancy if you are applying for a new policy – failure to do so could invalidate your cover.
Will my life insurance cost me more because I am pregnant?
No, your pregnancy shouldn’t cause your life insurance to become more expensive. However, as discussed above pregnancy can lead to new health issues which may need to be taken into account by your providers. Some providers will put your application on hold due to this, so it is best to get cover in place as soon as possible.
During the application I will be asked about my weight, with being pregnant this number will change so what figure should I provide?
Generally, insurers will expect you to provide an estimate of your weight immediately prior to becoming pregnant. They will understand pregnancy weight is not a fair indication of your usual weight.
I usually smoke but have stopped during pregnancy, how do I answer if I am a smoker on my application?
Sadly, if you have only given up smoking since pregnancy, insurers won’t classify you as a non-smoker. For non-smoker status, you have to have quit for 12 months and be able to assure you have not smoked any cigarettes, e-cigarettes (with or without nicotine) or used any nicotine replacement products during that time.
I am being asked about my alcohol consumption but am not drinking due to being pregnant – will my previous consumption be taken into account?
Yes. Insurers will ask about your current consumption but also about how your alcohol consumption has changed over the last 5 years and if you have been advised by a medical professional to reduce your alcohol intake. This will help them to achieve a clearer overall picture of your general health.
Getting life insurance as a mum with a pre-existing medical condition
Here at iam|INSURED, we can still help you find the best life insurance for mums, even with a pre-existing condition or medical issue. When you’re looking for great cover, the last thing you want to be worrying about is whether your health conditions could prevent you from getting the policy you need.
Below we have a list of some common medical conditions for adults in the UK to be diagnosed with:
|Obesity (high BMI)||High cholesterol||High blood pressure||Heart disease||Kidney disease||Multiple sclerosis|
|Asthma||Auto-immune diseases (e.g. fibromyalgia)||Irritable bowel syndrome (IBS)||Crohn’s disease||Stroke||Mental illness|
All of those examples are still only scratching the surface. As women, we also have to consider other specific conditions such as:
|Breast cancer||Uterine cancer||Ovarian/cervical cancer||Pregnancy related medical issues|
|Polycysitic Ovary Syndrome (PCOS)||Turner Syndrome||Rett syndrome||Primary ovarian insufficiency|
All of this may seem overwhelming, but we want to assure you even with one or more of these conditions it is still possible to get life insurance. You will just have to take your medical conditions into account when calculating the possible premiums you will be paying.
If you have concerns about how your pre-existing conditions may affect your policy, it is worth speaking to an expert such as iam|INSURED. We have helped thousands of families protect themselves with great cover despite any medical conditions involved.
Why is life insurance cheaper for younger mums?
Let’s be honest, we all don’t love getting older. As we age, the potential for new medical issues cropping up unfortunately does increase. This is why life insurance for young mums is generally cheaper.
This means it is wise to start looking into life insurance as early as possible, to ensure you get the best possible deal for yourself. Once you are locked into a policy, the price cannot be increased at a later point just because you have been diagnosed with an illness or medical condition.
What if I am a mum already and have life insurance?
So, you’re a mum and you already have life insurance. Well done to you, this is brilliant. You should be proud you have already taken the initiative to protect yourself and secure your family’s future.
Don’t be fooled though. Just because you already have cover doesn’t mean there is no potential to find yourself a better deal.
Here are some common misconceptions about life insurance policies:
- You cannot cancel or change your policy after it is in place
- If you change your policy, you will lose the benefits you already have
- Insurers will not allow you to have multiple policies
- You will be charged for cancelling your policy
All of this is false. In fact, we would advise that you regularly review your cover to make sure it is still the best option for what you need – particularly during major events in your life such as having a child.
Get in touch with one of our advisers today for helpful FREE advice at 0800 009 6559.
How much is life cover for older mums?
With the passing of time, it is sadly true that we are more likely to develop new medical conditions and illnesses. It isn’t a fun fact to hear, but it is an unfortunate fact of life. This is why every time you have a birthday your insurance premiums will increase. This means it is a good idea to lock in your cover as soon as possible.
However, if you haven’t sorted cover yet this isn’t a problem. You should still be able to get a fair deal no matter what age you are. You should just take into account you will most likely be paying slightly more than you did or may have done in your 20s or 30s.
Lifestyle and general health are also factors that need to be considered at any age when applying for life insurance. If you have had any medical issues they will need to be disclosed upon application. At iam|INSURED, we are experts in getting fairer rates for all based on our many years of work – regardless of an applicants age.
Medical conditions that may affect insurance later in life
Here are some medical conditions that may become an issue in later life:
|Obesity (high BMI)||High cholesterol||Heart disease||Mental health conditions|
|Type 2 diabetes||High blood pressure||Kidney disease||Cancer|
Most providers will take into account various risk factors such as these conditions, plus your occupation and recreational activities – but will usually still provide cover. All you need to do is make sure you consider this when calculating the potential amount you may pay for premiums.
What about life insurance for working mums?
Over the years, the family dynamic in the UK has really changed. Even only 60 – 70 years ago, it was expected that the dad went out to work and the mum stayed home with the children. With terms like “girl boss” on the rise it is clear that the status quo has changed somewhat – and it’s brilliant!
We celebrate powerful, working women – we have several here in our own office! The percentage of working mums in the UK continues to rise as the years go by.
In 2019, it was reported a staggering 75.1% of mums with dependent children (children under 16, or under 18 if still in full time education) were working mums. That equals to 3 in 4 of all mums in the UK being in the workforce – a 9% rise from the figures reported in 2000*.
With figures like this, we know a lot of you out there might be concerned about the impact if your family were to suddenly lose you and your income. Life insurance is specifically designed for this scenario and able to replace the income of a family member if they became ill or worse. You want to be sure that your family does not struggle financially if anything were to happen to you.
The main life insurance options for working mums
There are several options out there for replacing your income if you were suddenly unable to work or no longer around.
Some of the main life insurance options for working mums are:
- Health insurance
- Family income benefit
- Critical illness cover
- Income protection
- Personal accident insurance
- Term life insurance (family protection)
- Decreasing life insurance (mortgage protection)
Every one of these products are purposely designed to help you and your family in different ways if something were to happen to you. The choice of policy is all yours – the main thing is to consider your own circumstances and what cover is most appropriate for you.
All of these policies can give you the peace of mind that your family will be supported even if you are no longer around.
What about life insurance for self-employed mums?
So, you are a mum and also self-employed. In the UK, there is an estimated 4.95 million** people that are self-employed and that includes many working mums.
Being self-employed, it is probably even more important for you to make sure you have cover in place to safeguard your income if you were suddenly unable to work. If your business heavily relies on you working, it is important you consider protecting yourself.
Life insurance for stay at home mums
Stay at home mums are amazing. You think of a job, and they probably do it. Cleaner, chef, you name it and at some point in the day they are most likely filling that job role to support their family.
Just because you are not out earning a wage doesn’t make you any less valuable to your family. The support you bring is irreplaceable.
You may, however, be concerned as to what your family would do if you were no longer around. The thought around life insurance policies is often to protect the main breadwinner for the family, to help if there is any loss of income. We would like to make it clear it is still just as valuable to insure your life even if you stay at home.
If you were no longer around, there are potential increases in costs for your family. The soaring costs of childcare alone are enough of a reason to want to make sure your family receives financial support – especially when they may really need it. With life insurance, you can feel secure knowing your family will receive this additional support.
Life insurance for mums on benefits
We have spoken about working mums and stay at home mums – but what about mums on benefits you might be asking? With increasing costs in childcare, a lot of mums don’t have the option of working whilst raising young children.
We also have mums with medical conditions that could make it difficult or even impossible to work a standard 9-5 job. These scenarios are completely understandable, and benefits can allow for additional support for your family.
You might be concerned that being on benefits may affect your ability to take out a life insurance policy. Do not worry. Being in receipt of benefits shouldn’t affect your ability to receive cover.
Life insurance for single mums
As a single parent, you probably feel even more responsibility to make sure your children are supported and set up for a bright future. The responsibilities of a single-parent household compared to a two-parent household may feel completely different. Childcare could be shared with an ex-partner, or sadly, you may be a widowed parent.
It is straightforward in the life insurance industry to be able to set up a policy on a single life basis – in this day and age, it is not seen as uncommon for children to be from a single-parent household.
Whatever cover you decide is right for you, it will still be worth discussing with an ex-partner what you have in place. They may be the one helping your children to get what they are entitled to, so it is good for them to be in the loop.
It is also worth setting up any life insurance policy you take out under a trust. This can ensure only your children will benefit from any policy pay out as you can specify your beneficiaries. This is commonplace where parents have separated but still want to protect their children’s interests.
What if I’ve separated from my partner?
As mentioned above, it is common now for parents to have separated. If this is your situation though you may wonder what the best solution for you is in terms of life insurance. You want to do the best by your children and make sure they are still supported if anything bad was to happen to you.
There are several things to consider when taking out life insurance cover whilst separated such as:
- Joint policies: If you were in a long-term relationship with your ex-partner, you may already have a joint life insurance policy in place. You can speak to your ex about the possibility of maintaining this policy jointly or you could decide to each take out new policies on a single life basis.
- Ex-partner: It is possible you may not want your ex-partner to benefit from your life insurance pay out – and understandably want the money to go straight to your children. You are able to write your insurance policy into trust to specify the beneficiaries of your policy.
- Children with multiple dads: You may have children with different dads from different previous relationships. There are several options to protect your children in this instance. A trust will usually be the best option for you.
How much life cover does an average mum need?
First of all, let’s be clear there is no ‘average’ mum. You are all heroes. But we can give you an idea of the type of cover mums generally will take out – although there of course will be other factors such as health and lifestyle that may affect the cover you want or the cover that is available to you.
You should consider making sure to cover the main expenses you are responsible for paying, either jointly or solely. This could include but not be limited to:
- Childcare costs
- Mortgage repayments or rent
- Bills and utilities
- General expenses e.g. food shopping
There are also other potential costs to consider if you passed away. For example:
- Funeral costs
- Legal expenses (especially if you own a business or are self-employed)
- Loss of earnings
It may be worth sitting down and going through your monthly income and expenses to decide how much cover you think is the appropriate amount for you.
Can I get life insurance for my mum?
If you are considering insuring your own life, this may make you curious as to what your cover your own parents have in place. You may want to help by arranging a life insurance policy for your own mum or dad.
Unfortunately, it isn’t possible for you to insure the life of another person. The person who would be the policy holder must complete the application themselves.
There is only one exception to this. This is when you have something called an ‘insurable interest’ in your parent. In simple terms, this means yourself and your parent have a shared responsibility such as being jointly responsible for a mortgage. But even in this case you are still required to have your parent’s permission before taking out any policies.
Should a mum write a life insurance policy into Trust or have a Will?
In a more recent development, you now have the ability to write a life insurance policy into trust. A trust is a legal document that declares your wishes for what you would like to happen with a benefit payment from your policy.
There are several reasons you may wish to write a life insurance policy into trust, the main ones of these being:
- To assign beneficiaries: You are able to select one or several beneficiaries who can receive a % of the benefit amount
- For a faster pay out: If you have a trust, you will avoid probate which means your beneficiaries can receive their payment in weeks rather than months or even years
- For inheritance tax planning: You could avoid paying IHT on your estate – which could be up to 40%
- To assign a trustee: The trustee you choose will be responsible for making sure your wishes are actioned
It would also be advisable to have a Will in place alongside this to help outline your wishes should you pass away.
Below are some helpful resources for further information into some of the topics covered in this article: