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A guide to life insurance for new parents

When you’re expecting a baby there’s a lot to think about. There’s the birth itself, antenatal classes, nursery décor and that all-important pram. In this mass of preparation, it’s also worth thinking about how you’ll protect your new family, and that’s where life insurance comes in.

mum-and-dad-kissing-their-baby

Life insurance could be one of the most important things you do to protect your little one’s future. Of course, no amount of money could ever replace you, but it could help cover costs, and lessen financial worries if the worst ever did happen.

We know you’ve got a lot on your plate, so here’s a quick family life insurance guide to help you explore your options. As your time is precious, we’ve kept it short and sweet.

Why should I think about life insurance now?

When you start a family, life isn’t just about you anymore. You have new responsibilities and a baby who depends on you for everything. So, it’s not surprising that many of us start wondering how our family would cope if the unthinkable happened.

It’s never easy to think about a tragedy striking but having life insurance in place means your family would have some financial security there to help them carry on living life as normally as possible.

How could life insurance help?

Life insurance could protect the people you love in a variety of ways:

Cover the cost of a stay-at-home parent

If you’re having a baby, it’s likely you’re going to be a stay-at-home parent - at least for the near future. This means if anything happened to you, your partner would probably have to reduce their hours at work, or pay someone to do the many things you do.

Help to pay bills and debts

If the unthinkable happened, your partner would still need to pay the mortgage or rent and the household bills. Life insurance could ease this financial burden and ensure your family can stay in the family home.

Help with special little extras

A life insurance payout could help cover the small but special things that add so much to your family’s way of life. So your children could carry on doing what they look forward to each week, from swimming lessons to after school club and hobbies.

Protect their future

It might seem a long way off right now, but one day your baby may be off to college or university. Taking out life insurance would mean money could be there to help them realise their dreams, even if you weren’t around.

child-swimming

Should we take out life insurance for mum and dad?

It can be a good idea. Especially when you have a young child who is completely reliant on you.

If you’re working, how would your family make ends meet without your salary? And if you’re at home looking after the kids, without you the cost of childcare and the all the other things you do for the family could mount up quickly.

father-mother-newborn-baby

What type of life insurance is available?

There are two types of life insurance for parents; the more common is term life insurance.

Term life insurance

With term insurance you choose to be covered for a set period of time. If you died within this time, the policy would pay out. How much you pay each month depends on the term you choose, your age, your health and lifestyle and the amount of life insurance you need.

This type of cover can make sense for parents with a young family as you can choose to cover the years when your little ones need you most and stop once they’re old enough to look after themselves.

Whole-of-life insurance

As the name suggests, this kind of insurance covers you for the whole of your life, rather than for a specific period of time. Put simply, you pay a set amount into your life insurance plan every month and the policy will pay out whenever you die. This option is less common for younger parents.

Critical illness cover

As parents of children, it can make sense to add critical illness cover to your life insurance policy. Critical illness insurance pays out if you are diagnosed with a serious illness or have a stroke or heart attack. Exactly what is covered varies between policies so always check the details.

How much insurance might I need?

This very much depends on your circumstances. It’s worth having a think about how long you want to be insured for and the amount of money you might need to cover your income, debts, lifestyle and even funeral costs.

If this sounds too daunting right now, don’t worry. We have a life insurance calculator that can help.

Life insurance for new parents really can make sense. After all, it’s good to know the people you love will have some financial security, whatever the future holds. And once it’s in place you can get on with enjoying your little bundle – and all the joys of parenthood.

SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, pet insurance, car insurance, home insurance, ISAs and Will writing services.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife? 

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is entered on the Financial Services Register (registration no. 110418). As part of SunLife’s commitment to quality service and security, telephone calls may be recorded.

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan the funeral services are arranged and provided by Dignity Funerals Limited. Dignity Funerals Limited is a company registered in England and Wales No. 00041598. VAT registered No. 486 6081 14. 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands, B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 808. Part of Dignity plc. A British Company. Dignity are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority but are registered providers with the Funeral Planning Authority.

Who provides the Funeral Plans?

The funeral services are arranged by a funeral director selected by Golden Charter Ltd. Golden Charter Ltd are not required to be authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority in relation to funeral plans but are registered providers with the Funeral Planning Authority.

If you choose to pay for your funeral in one go, with a single payment, you will have a contract with Golden Charter. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

If you choose to pay for your funeral with a life insurance policy, the policy will be provided by AXA Wealth Ltd, trading as SunLife. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides Family Life Insurance?

SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. 

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.