Expertly compared by David Beard

Products Updated October 25, 2021

 

Family Cover Life Insurance

If you are looking for family life cover or want advice on what options are open to you then our approved life insurance experts can help.

 

8 providers expertly compared:

ActiveQuote

Provider
ActiveQuote

Products
Life Insurance

Speciality
Compares The Market

Rated 4.8/ 5

All credit types

Active Quote will compare the marketplace across 10 life insurance providers to find you the best deal that meets the needs of youself and your family. Finding the best deal from providers such as Zurich, VitalityLife and Royal London only takes a few minutes and policies can be purchased online.

8 providers expertly compared:

Available via broker only

Legal & General

Provider
Legal & General

Products
Life Insurance

Speciality
Life Insurance

Rated 4.6/ 5

All credit types

Life cover or life assurance helps you to financially protect the future of your loved ones. Life Insurance from Legal and General offers reassurance that your loved ones or family will still be looked after financially should the worst happen.

8 providers expertly compared:

Available via broker only

Zurich

Provider
Zurich Life Insurance

Products
Life Insurance

Speciality
Life Insurance

Rated 4.2/ 5

All credit types

Zurich Life Insurance will pay out a cash sum if you die during the term of the policy, or if you are diagnosed with a terminal illness and are expected to live for less than 12 months. Plans can be tailored with optional extras to suit your individual requirements and to provide added peace of mind.

8 providers expertly compared:

Available via broker only

Friends Life

Provider
Friends Life

Products
Life Insurance

Speciality
Life Insurance

Rated 4.7/ 5

All credit types

Friends Life is now part of the Aviva Group. Get the cover you need to protect your family and loved ones when you're no longer around.

8 providers expertly compared:

Learn More Available via broker only

Vitality

Provider
Vitality

Products
Life Insurance

Speciality

Rated 4.6/ 5

All credit types

If the worst should happen, or you can’t work because of illness or injury, Vitality Life's 5-star Defaqto award-winning range of protection products will give you or your family payments to make things easier.

8 providers expertly compared:

Available via broker only

Royal London

Provider
Royal London

Products
Life Insurance

Speciality
Life Insurance

Rated 4.5/ 5

All credit types

With a policy in place with Royal London , you can leave money to your loved ones when you pass away, to help protect your family financially. Get a free quote or apply online.

8 providers expertly compared:

Available via broker only

LV

Provider
Liverpool Victoria

Products
Life Insurance

Speciality
Life Insurance

Rated 4.5/ 5

All credit types

Life insurance from Liverpool Victoria will pay a lump sum should the worst happen, so you will have peace of mind that your family and loved ones will be financially protected when you’re no longer here. Even superheroes need protection.

8 providers expertly compared:

Available via broker only

Ageon

Provider
Ageon Life Insurance

Products
Life Insurance

Speciality
Life Insurance

Rated 4.6/ 5

All credit types

Ageon is here to help you reach your goals at every stage of your life. Part of that involves putting plans in place to adequately protect and insure you against the unexpected things in life.

Read our customer and visitor reviews for this product:

Rating: 5 / 5 with 1 votes

No issues using this service.

by ANOM

I've used ActiveQuote before and find the whole process simple and they do as promised.

Get Family Cover Life Insurance With Lending Expert

If you’re looking for family cover life insurance then look no further! Our team of approved life insurance experts can help and provide you with the best advice. Get started today!

 

Key Points

  • Family cover life insurance is a life insurance policy that will pay out to your family when you die. 
  • You can add your family members as beneficiaries to your life insurance policy. 
  • There are several types of family cover life insurance available, including: level term, decreasing term, and whole of life. 
  • Family cover life insurance is suitable for a wide range of family situations.
  • You should consider whether a single or joint policy would work best for you and your partner. 

 

What Is Family Cover Life Insurance?

Family cover life insurance isn’t necessarily a particular type of life insurance policy – it is a life insurance policy that you set up to pay out to your family when you die.

It’s up to your family how they use this money that they receive. Many families choose to use the funds to help with funeral costs, clear mortgages and debts, and cover everyday expenses. Some choose to put some of this money away for your children’s future expenses, such as a house deposit or university fees. 

 

How Does Family Life Insurance Cover Work?

With Family cover life insurance, you are able to decide which type of life insurance you’d like, how long you want to be covered for, and the amount of the cover. You would then add your family members as beneficiaries.

With this cover, you’d pay the insurer a regular premium. If you were to die during the policy term, your family will receive the agreed payout amount. Some policies will also pay out if you’re diagnosed with a terminal illness and have a life expectancy of less than a year.

It’s important to remember that the payout amount can vary over time. This is dependent on the type of policy you choose

 

What Types of Family Life Insurance Cover are Available?

There are several different types of life insurance that can help to protect your family. It’s really important to do your research and find the best insurance for you and your family. You can speak to our team of professionals to discuss your options and work out the best policy for you.

 

Level Term

Level term life insurance pays out a lump sum to your family if you die during the cover term.  This amount is chosen by you when you take out the policy.

With level term cover, the amount your family will receive stays the same throughout the term. However, if you die after the term has ended, your family won’t receive anything.

 

Decreasing Term 

Decreasing term life insurance offers a payout amount that decreases as time passes. This type of life insurance policy could be useful if you just want to help your family pay off a mortgage if you die. 

With a decreasing term policy, your family will only get a pay out if you die within the policy term.

 

Whole of Life

Whole of life insurance policies don’t have a fixed term. This kind of policy will pay out whenever you die. As a result, this is  usually the most expensive option. 

Whole of life policies may be treated differently in terms of tax than term policies. We’d always recommend seeking professional advice before taking out life insurance cover. Get in touch with our friendly team of experts today!

 

Who Needs Family Life Insurance Cover?

Family cover life insurance is suitable for a wide range of family situations:

  • Young families –  life insurance could help you feel more secure that your partner won’t be left with a financial burden if you die.
  • Families with older children – a payout could help your family pay off debts and bills, or go towards your children’s future expenses. 
  • Single parents – the payout could be used to help your family support your children as they get older.
  • New couples – you may be reliant on both your incomes to pay the bills, so it’s worth discussing your life insurance options with your partner.
  • Homeowners – if your family would struggle to pay your mortgage or household bills without you, life insurance can help.

 

Should I Get a Single or Joint Life Insurance Policy?

If you’ve decided to take out life insurance and so has your partner, you can take out a joint life insurance policy. Getting a joint life insurance policy can be cheaper than separate policies. It’s really important to note that joint policies usually only have one payout, after the first person in the policy dies. 

However, if you and your partner take out separate policies, they will pay out independently if you die during the term of the policy. You’ll both name your separate beneficiaries, and any that are listed on both yours and your partner’s policy will receive two payouts.

 

What Are the Alternatives to Family Life Insurance Cover?

Getting life insurance cover isn’t the only way to help protect your family after you die. There’s several options you can consider, including: 

 

Family Income Benefit

Family income benefit pays out a monthly sum to your family rather than a one-off sum. This means that this money will act as a replacement for your wage. A family income benefit covers a set term, so will only pay out if you die within the term.

 

Death in Service Cover

Death in service is a type of insurance that is usually offered by your employer as part of your overall package.

The lump sum that will be paid to your beneficiaries is a multiple of your salary. This will only be paid if you die whilst you are employed by the company that provides the cover. If you leave the company, you can’t take the cover with you. This means that cover will end as soon as your employment with the company does. 

 

Critical Illness Cover

Critical illness cover is sometimes offered as an add-on to your life cover, but it can be bought as a separate policy. This cover will pay out if you’re diagnosed with a specified illness. Each insurer lists different illnesses, so it’s really important to check through the policy before taking out cover with them.

Some critical illness policies also include cover for your children. With these policies, if your child were to become sick with a specified illness, you may be able to make a claim without impacting your main policy. 

With critical illness cover, you pick the amount and the term that you’ll be covered for.

 

Income Protection

Income protection covers you if you can’t work due to illness, injury, or if you’ve been made redundant. With income protection, there isn’t a set list of qualifying illnesses.

Income protection is available as a long-term or a short-term policy.

FAQ

There is a statistic that all should be made aware of whilst searching for family life insurance. Around one child in thirty loses a parent before they grow up. This hard hitting loss can have financial implications for any son, daughter or any family member.

Family life insurance is one of the cheapest ways to protect your finances should the worst happen.

Family life insurance is all about protecting your family and its finances which means you can decide what sort cover you require and for how much per month. Health and ages are taken into account to calculate your monthly premium and how long you require the cover to last is up to you, putting you in control so you are covered for a period of time that suits you.

Also see: Death in service life insurance

  • Flexibility relating to the way in which the death benefit is paid out. This can be paid out as a lump sum or as monthly instalments and it can be arranged to suit the needs of you and your family.
  • How long you require the cover is up to you, this will ensure your covered when it suits your needs.
  • The policy is affordable cover- The cost of family life insurance is affordable which makes it possible to secure the future of your family.
  • Cash lump sum benefit- Decide how much cover you require when you take out the policy. Also if you were to be diagnosed with a terminal illness 12 months before the policy is due to expire most insurers will pay out a lump sum benefit (terminal illness benefit).
  • Monthly payments- Your premiums should not increase even if there is a change in circumstances (health etc).
  • Joint policies - Joint policies are available and will pay out on the first death.
  • Length of cover - You choose how long you require the cover for from 5 up to 50 years.
  • Critical illness cover is an additional offer with this policy
  • Family life insurance cover is a further phrase of describing life insurance, and it works by paying either a lump sum or a regular monthly payment benefit (this is more common with the family life insurance policy) should the policy holder's die or become ill. These benefit payments act as a safety net once the policy holder has passed away to help your family, especially if you are the main breadwinner.

    If a death occurs within the agreed term time of the policy or there is a diagnosis of an illness that meant a life expectancy of less than 12 months the death benefit would be paid.

    The main family insurance policy is the family income benefit policy, this policy would pay the death benefit as a monthly instalment to your family should you die. The main benefit to this policy is that you would be able to dictate how much the family earns per month. For example if you are the main breadwinner and you were to earn £2,000 a month, you could ensure that the same amount is paid per month to your beneficiaries.

    Also see: Guaranteed acceptance life insurance

    Related Links

    Critical Illness Cover

    Critical illness quotes compared side-by-side.

    Family Life Cover Insurance

    Get life insurance cover for the whole family.

    Whole of Life Insurance Cover

    Whole of life insurance quotes from leading providers.

    Joint Life Insurance Cover

    Joint life insurance cover from leading providers.

    Level Term Life Insurance

    Compare level term life insurance quotes.

    Cover For Mortgage Payments

    Get cover for your mortgage payments.

    Life Insurance For Parents & Children

    Life cover quotes for parents and children.

    Life Insurance For Mums & Dads

    Protect your family with life insurance for Mums & Dads.

    Over 50's Life Insurance

    Over 50's life insurance quotes from leading providers.

    Over 60's & 70's Life Insurance

    Over 60's and 70's life insurance quotes from leading providers.