When children join a family, your financial responsibilities can change quickly. Paid income matters, but so does childcare, school transport, managing the home and supporting others. Those responsibilities deserve consideration when thinking about insurance.
Understand what the household depends on
List essential bills, mortgage or rent, childcare and other support your family needs. Consider the contribution of each adult, including unpaid caring work that could be costly to replace.
Life cover and income cover do different jobs
Life insurance may provide a lump sum after an insured death. Income protection may pay qualifying ongoing benefits when illness or injury keeps a person from working. Discuss how each could relate to your household circumstances.
Think about serious illness too
Trauma cover may provide a defined lump-sum benefit following certain medical events. Health insurance may contribute towards eligible private treatment. Their claim triggers and exclusions can be very different.
Review cover as family life changes
A new mortgage, return to work, a second child or reduced working hours can change household needs. It is sensible to revisit the questions periodically, even if the eventual decision is to retain existing cover.
Questions parents can ask
- Could the household cover essential costs on one income?
- How would childcare work if a parent became unwell?
- What savings and policies do we already have?
- How much premium is affordable over time?
General educational information only, not a recommendation for a particular product or sum insured.
Questions to take away
Which facts about my own situation matter most? What exclusions or eligibility rules still need checking? Who will give any personalised advice, and how can I review their disclosures?
This is general educational information. Confirm current rules and your circumstances with an appropriately authorised adviser.
General educational information only; individual circumstances, eligibility and policy terms must be considered before making decisions.