Family protection cover starts with the people who depend on you. If one parent died, would the household mainly need to clear a debt, replace a monthly contribution or pay for care that a family member currently provides? Your mortgage statement gives you one figure. Your household budget tells you what else matters.
What would it cost to keep the household running?
Write down the bills that would continue, including food, utilities, council tax, transport and childcare. Then think about what might change. A surviving partner might reduce working hours to collect children from school or pay someone to cover the school holidays.
For example, suppose a family expects essential spending of £2,400 a month after allowing for any mortgage repayment from existing cover. If the surviving household would have £1,750 a month coming in, the gap is £650 before new childcare costs. That is a starting point for discussion. Rework the figures for each adult, including anyone who does unpaid care.
Would a lump sum or regular payments be more useful?
A lump sum could help with an immediate expense, such as repaying a mortgage. Our mortgage life insurance guide explains joint and single policies. Family income benefit can instead provide regular payments following an eligible death for the remainder of the insured term. A claim late in the term normally means fewer payments remain. Ask how the payment amount, end date and any increases are defined.
What protection do you already have?
Check existing personal policies and employer benefits, including death-in-service cover. Find out who is covered and whether benefits end when you change jobs. Keep policy schedules with your household records and review them after a new baby, separation, move or change in borrowing.
Illness can leave a different gap while everyone is still living. Our guides to critical illness cover and income protection explain the distinction between a covered diagnosis and a loss of earnings. Talk to Greenacre about family protection with your figures and the monthly premium you could comfortably maintain.