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Family Life insurance.

Every family is different. Whether you’re a merged family with lots of children, a single parent, or newlyweds, life cover will protect your loved ones when you’re no longer around.
Let’s take a look at the different types of family life insurance, how much you can expect to pay and why life cover is important to support your family financially.
Family life insurance_young family with baby

What is Family Life Insurance?

Family life insurance safeguards your family’s future. Why might you decide to take out family life insurance? Well, it could be because:

  • you get married
  • you have children
  • your family grows
  • you want to leave a gift for your grandchildren
  • you buy a house

Whatever the reason, family life insurance can provide financial support for your loved ones when you no longer can.

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How does family life cover work?

Family life insurance may simply be a single life insurance policy, or it could be a family life insurance plan made up of a range of products. The exact products you include in your plan will depend on your wishes and your family’s needs.

Let’s look at the different products you could include in your family life insurance plan.

Life insurance
The most obvious element of your family life insurance plan is life insurance itself. The best type of life insurance for you and your family will depend on what you want the payout to cover, your dependents, debts, and your health.

Term Life Insurance
Term life insurance covers you for a set period of time. It’s often more cost-effective than whole-life insurance, making it an appealing choice if you want to safeguard your loved ones without facing high premiums. If you pass away during the term, your family will receive a lump sum (which will be paid out tax-free).

However, if you die after the policy ends, the plan will expire, and no payout will be made.

There are two types of term life insurance.

  • Level-term life insurance means that your monthly premiums stay the same for the entire term – typically, anywhere between 25-40 years.
  • Decreasing term life insurance policy is where the potential payout reduces over time. Many people choose a decreasing term life insurance policy to ensure that a mortgage will be paid off.

Whole Life insurance
Alternatively, whole life insurance may be a better fit. This cover lasts for your entire lifetime and pays out a lump sum to your family when you die. Many whole life insurance policies also include a savings element.

You may come across options for an Over 50s life insurance policy. This may provide more value than a standard life insurance policy if you’re aged between 50 and 80 years old.

Another option is for you and your spouse or partner to take out a joint life insurance policy. This type of policy will pay out to the surviving individual on the death of the other.

There are many pros and cons to each type of insurance policy. But we don’t expect you to know the answers. When you talk to our team, we’ll explain the details of each type of life plan and help you figure out what is suitable for you and your family. We’ll answer any question you have and give you peace of mind that you’re choosing the most appropriate insurance policies for your needs.

Critical and serious illness cover.

If you’re diagnosed with a serious or life-threatening illness, this type of cover will pay out a lump sum or a regular income. You can use the money to maintain your living costs, so you don’t need to worry about how to pay the bills. Or you could use it to aid your recuperation and recovery.

The illnesses included in critical and serious illness cover vary depending on the policy and the insurer. Most policies cover conditions such as heart attack, stroke, and cancer.

critical illness cover father and daughter at sink

Family income benefit.

A family income benefit (FIB) is an insurance policy that will provide a regular monthly income rather than a single lump sum once you pass away. These plans are ideal for stabilising the family finances and ensuring that your loved ones can maintain their standard of living. If you rely on two incomes to pay your living expenses, then taking out a FIB plan could be crucial.

Typically, these are term-length policies. Any monthly income will only be available for the remainder of the term. For example, if you took out a 40-year term policy and passed away seven years later, the policy would pay out a monthly sum (tax-free) for the remaining 33 years.

If you do not pass away during the term of your policy, there will be no payout, and your policy will expire.

Income protection insurance.

If you can’t work because of illness or injury, an income protection plan can keep you financially afloat. It can help you and your family to maintain your lifestyle without relying on savings or state benefits. Income protection will pay out a percentage of your income until you are able to work again. If your illness or injury causes you to retire on medical grounds, your income protection plan could pay out until you reach retirement age or the end of your policy term – whichever is first.

More Information
income protection woman working from home
mortgage life insurance - Family with baby

Mortgage protection insurance.

Mortgage protection insurance will pay off the remainder of your outstanding mortgage if you become terminally ill or die. This means that your family can keep their home without the need to cover mortgage payments when you’re no longer around. It’s one less worry on their shoulders.


Whole of Life Insurance


Critical Illness Cover

Protection your home icon

Mortgage Life Insurance


Family income Benefit

The cost of family life cover.

The exact cost of your family life insurance plan will depend on your personal circumstances and needs, including:

  • age
  • health
  • job
  • dependants
  • debts
  • how much cover you require

It will also depend on what type of insurance you’re looking for and whether you want to have a single policy or a combination plan – perhaps featuring life insurance, critical illness and income protection.

At The Insurance Surgery, we’ll take the time to discuss all these factors and what you need from your plan to make sure we find the best fit family life insurance policy.

Let’s look at three hypothetical examples of how much a family life insurance plan can cost.

Family life insurance example cost 1.

Maria aged 30 and Steve 33  have three children. Maria works part-time in retail and earns £24,000. Steve is an IT developer and earns £42,000. Both are in good health and non-smokers. They want to take out a joint life insurance policy with a payout of £350,000 to cover the mortgage over a term of 30, a decreasing mortgage plan has been advised as the most appropriate product.

Maria and Steve’s monthly premium is £16.80 | £350k payout.

Single mother with kids

Family life insurance example cost 2.

Rachel is 36 years old. She works as a police officer, with a salary of £38,000. She smokes but is in good health. She is a single parent with one child. Rachel owns her home outright. She is looking for a family life insurance plan that will pay out £180,000. This would help her parents look after her daughter. She would also like to include income protection in case she can’t work for any reason, the monthly benefit she will receive from her income protection benefit after her deferred period of 6 months is £2000 per month (this benefit can only start once her 6-month sick pay ends).

£46.59 per month | £180k Lump sum payout + 2K per month Income protection Benefit.

Rachel_with child

Family life insurance example cost 3.

Tom lives with his wife, Helen, his 7-year-old son, Max, and his father, Charlie. Tom is 48 years old. He is a non-smoker but had a heart attack two years ago. He suffers from depression. Tom works as a prison officer and earns £32,000. Helen works as a primary school teacher and earns £30,000. She receives life insurance cover through her job. Tom decides to take out life insurance combined with family income benefit. He wants to make sure that his family will be provided for should he die. He is interested in a life insurance lump sum payout of £100000 and a family income benefit amount of £12000 per annum, both over a 20-year term.

£77.07 per month | £100k Lump sum payout + family income benefit of 12k per annum.

Tom's life insurance case study

How can The Insurance Surgery help?

The Insurance Surgery is a leading broker for life insurance. We work with a wide range of insurance providers to get the best life insurance policy for your needs and budget.

We can help you from the very start of the process when you contact us for a life insurance quote, assist you in deciding what cover you need, find the best fit policy, and continue to advise you right through to when your family make a claim.

We don’t provide life insurance quotes online. Instead, we offer a personalised service over the phone, taking the time to get to know you and exactly what cover you need. We often have access to policies that aren’t available to the general public.

For over twenty years we’ve been working with clients across the UK, helping to find lasting financial protection for them and their families.

With our support, you can benefit from:

  • A dedicated advisor who is there to answer any of your questions
  • Free Trust service, allowing you to set up your insurance payment as you wish
  • Support for those with pre-existing conditions
  • Voted Best life and protection broker 2022
  • Rated 5* on Trustpilot and Feefo
  • Access to high street and independent insurers
  • Price match promise guaranteeing you won’t pay a penny more than you need to

But perhaps most importantly, here at The Insurance Surgery, we have a proven track record of helping people who have been declined for life insurance. A huge 70% of people turned down elsewhere have been accepted by us. That’s because we see ourselves as problem-solvers.

We take the time to get to know you and your condition. By finding out as much as we can, we then have the information to share with the insurance underwriter.

Our reputation is built on trust and we are here to help answer any questions you may have.

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How life insurance helps families.

  • Provides financial protection and peace of mind in challenging times.
  • Replace lost income, ensuring that surviving family members can continue their standard of living.
  • Secure funds for your children’s education.
  • Protect the family home by covering outstanding mortgage payments.
  • Provide financial support if you’re diagnosed with a life-threatening illness.
  • Provide regular monthly payments to surviving family members after your death.

Whether your family life insurance plan is purely life insurance or combined with other elements such as income protection or critical illness cover, you can rest assured that you and your loved ones will be protected.

Need Advice Regarding Family Life Insurance?

We answer your most frequently asked questions.

Yes, there is family life insurance. Your family life insurance plan can include just life insurance, or life insurance can be combined with serious or critical illness insurance, mortgage protection insurance, income protection or family income benefits.

The life insurance element of your family life insurance plan pays out a lump sum to your loved ones when you die. This money can be used to maintain your family’s lifestyle, pay off a mortgage, cover funeral costs, or wipe out debts. In addition to life insurance, you may choose to include serious or critical illness cover, mortgage protection insurance, or family income benefits in your plan.

Individuals who are named as the beneficiaries of a life insurance policy can generally claim the death of the policyholder. However, you should always check the policy documents and speak to your insurance provider to get the exact details of the process.

If you take out a whole life insurance policy, it will pay out a lump sum on your death. If you take out a term life insurance policy, a lump sum will only be paid if you die during the time period covered by the policy. If you die after the term policy ends, your family won’t get anything.

Yes, you can take out life insurance on a family member, but you must be able to prove that their death would cause you financial loss. This is called insurable interest. For instance, if that family member owes you a large sum of money or you would have to pay for their funeral and other expenses, you may be able to take out life insurance on them. However, insurance providers vary in their approach to this, so it’s best to speak to an advisor.

This will vary depending on your family’s personal circumstances. Factors that can affect the amount you pay each month include age, job, health, coverage required.

Yes, you can take out life insurance when you’re pregnant. In fact, starting a new family is one of the main reasons that people consider life insurance.

Useful Links.

If you have any further questions about anything to do with Life Insurance and protection for your family, please feel free to contact our team of expert Life Insurance advisors.
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