What changes when you become a parent
Before children, a life policy mostly protects a partner or a mortgage. Once you have a baby, the list gets longer. Someone will need to pay for food, clothes, school trips, after-school clubs and a home big enough for everyone, for the best part of two decades.
Most new parents we speak to are not worried about themselves. They want to know the kids would stay in the same house, at the same school, with the same friends. Good cover is built around that picture, so start with the life you want your children to keep.
Working out the money your family would need
Add up the big fixed debts first, usually the mortgage. Then think about the yearly running cost of the household and how many years your children will depend on you. Childcare is the cost parents forget most: if one of you died, the other might need paid help to keep working.
Some families also want a separate pot for university or a first car. You do not need to fund every wish. Aim for the things that would hurt most to lose. For most families that means the home and the monthly bills first, with extras added if the budget allows. A rough figure is fine to start with, and we can refine it together.
- The remaining mortgage or rent for the years ahead
- Monthly household bills and food
- Childcare, before and after school, and in the holidays
- A buffer for funeral costs and time off work for the surviving parent
- Any extras you care about, such as help with further education
Lump sum, monthly income, or both
A level term policy pays one fixed lump sum. It suits clearing a mortgage or a large debt in one go. Family income benefit pays a regular tax-free sum from the claim until the policy ends, which feels closer to the salary your family lost and is often cheaper for the same protection.
Plenty of parents mix the two: a decreasing policy for the repayment mortgage and family income benefit for living costs. We can show you how each option changes the cover your children would receive at different ages. A monthly benefit also takes the pressure off a grieving parent, who would not need to decide how to invest a large sum straight away.
Making sure the money reaches your children
Children under 18 cannot receive a payout directly. If your policy is not in trust, the money normally goes into your estate and can wait until probate is complete. It may also count towards your estate for inheritance tax. For a young family, the wait is often the bigger problem, because the bills keep coming while the paperwork is sorted.
Placing the policy in trust lets you choose trustees, often your partner and a relative you rely on, who can use the money for your children without waiting for probate. A will that names guardians completes the plan, because the trust handles money and the will handles who looks after the children.
Questions worth asking before you buy
Most of the choices on a parent's policy come down to a handful of details. Ask whether the cover amount stays level or falls over time, and how that lines up with your mortgage. Ask what happens if you miss a payment during a tight month, and whether you can increase cover when another child arrives without starting again.
Some UK insurers add extras for families, such as a small amount of children's critical illness cover or support services like a remote GP or counselling line. Treat these as a bonus. Judge the main cover first, then let the extras decide between two policies that are otherwise close.
Be open on the application about shift work, travel, hobbies and health. Parents sometimes worry an honest answer will cost more. It might, but an insurer can reduce or refuse a claim if something important was left out, and your family is the one who would face that.
- Does the cover fall or stay level over the term?
- Can I add cover after another child without new medical questions?
- Is any children's critical illness cover included?
- What happens if I need to miss a payment?
How Hi Tomorrow helps parents
We start with your family rather than a product. We ask how old the children are, what you both earn, who does the school run and what you would want to stay the same. Then we compare the insurers on our panel and recommend a mix of cover that fits your budget.
We fill in the application with you, help with any medical questions and set up the trust forms at the same time. If your family ever needs to claim, they can call us and we will work with the insurer on their behalf.