For many, starting a family is a joyous time filled with happiness and new experiences for both parents and children. However, it quickly becomes apparent how expensive it is to raise children and the new financial responsibilities they create.
Why is life insurance important for new parents?
The reasons to purchase life insurance greatly increases once having children. A policy could provide you and your family with invaluable peace of mind.
Life insurance could help you cover:
Accommodation – Your family’s housing costs such as a mortgage, rent or bills can be covered by a life insurance payout.
Education and hobbies – School fees and clubs at any age can be paid by the money awarded from a policy. If you are looking at privately educating your children, this could be a major consideration when deciding on a policy. In the UK, the average cost for a private school is £18,456 (Statista, 2025) with the average cost of a part-time nursery place for a child under 2 still being £3,667 (Coram, 2025).
Do I need to change my life insurance when my baby is born?
Once your child is born, or adopted, your expenses are likely to increase from the cost of clothing to childcare. Reassessing your policy is a good idea to ensure your loved ones will still be adequately covered in the event of your or your partner’s death. You may be able to modify your existing cover to adapt to your new circumstances.
The best life insurance for new parents:
- Life Insurance – This is a cash sum that will be paid out to beneficiaries if valid cover is in place at the time of death. The sum remains the same unless you choose to change the policy. The sum can be used to help pay off a mortgage and everyday expenses.
- Decreasing Life Insurance – This type of policy acts the same as Life Insurance however, it is designed to cover mortgage repayment instalments. Therefore, the policy cover decreases in line with the amount left on the mortgage.
- Critical Illness Cover – This is an additional premium on top of a Life Insurance or Decreasing Life Insurance policy. In the event of being diagnosed with some specified illnesses, this policy can help to cover costs if you must take time off work to recover.
How much you pay monthly is dependent on which of these various policies and additions you choose as well as personal details such as health and age.
Although the need and cost of cover can vary greatly depending on your personal circumstances, Life Insurance can help to protect any new families against financial hardship in the untimely passing of a parent or guardian. During an emotional and difficult time, Life Insurance can give you and your loved ones invaluable peace of mind. To find out more about life insurance to protect you and your family, please visit here: Life insurance for new parents | Legal & General
Photo by Danik Prihodko: https://www.pexels.com/photo/parents-lying-on-the-bed-with-their-newborn-baby-15961901/
