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Last Updated on 28 May 2018

Life Insurance for Mums

Whether you are a married or single mum, and whether you work or stay at home, your children and family are counting on you. The services you provide to the family are invaluable, but if you become sick or pass away there is a very real cost for replacing those services. From childcare you provide to food you cook to income you bring into the household, your family will be lost without you. A life insurance policy allows those you love to at least maintain financial stability even as you cope with serious illness or your family grieves your untimely death.

What is life insurance for mums?

Life insurance for mums can be purchased from any life insurance company that provides policies to adult women. There are no specific policies geared solely towards mothers, so you can shop for any policy that offers the coverage you need. You should be sure to look for a policy that provides not just a death benefit, but also critical illness cover and cover in case you become permanently unable to work.

Does every mum need life insurance?

Ever mum should have a life insurance policy, regardless of whether you work and bring income into the household or whether you stay at home and care for your family. The income you bring into the household may be necessary to pay the mortgage, save for your child’s education, and make your other bills. The services you offer as a mother also have a tangible value associated with them and if you were not around to provide them, someone else would have to be paid to take care of the tasks you do.

Do stay-at-home mums need life insurance?

Stay-at-home mums provide childcare services, educate and tutor children, cook for a family, drive children to events, and do countless other tasks to keep a family running. The value of the services you provide is astronomical. If you pass away, someone will need to take care of your children and household. The life insurance policy you purchase should provide funds necessary to hire help and/or to allow a spouse to cut back on hours to be home with the children more.

Do single mums need life insurance?

Single mums may be the only breadwinner for a family, so critical illness coverage and disability coverage are essential. If you are sick and cannot work, you need your life insurance policy to pay out so you can still care for yourself and your child. If you pass away, your child may be cared for by another family member or trusted friend and you also want to ensure you leave sufficient money behind to provide for your child’s needs. A life insurance policy allows you to ensure you are leaving your child a legacy.

How much life insurance does a mum need?

The amount of life insurance required is going to vary depending upon many factors. If you work outside the home, you want to ensure you have enough money to replace your income for a period of time so your spouse does not struggle to make the bills. You may wish to ensure your policy is big enough to pay off a mortgage on your family home and to pay down other debts your family may have, as well as to provide for educational opportunities for your children. Working mothers also perform many childcare services and household tasks in addition to their paying jobs, so do not forget to factor in the costs of these services when you calculate the amount of cover to buy.

For stay-at-home mums, you also need to consider the expenses your family will incur and the losses that will be endured if you pass away. You want to ensure your policy is large enough to provide the money your family will need to get the best care for your children if you are not able to be there for them yourself.

What should a mum look for in a life insurance policy?

A mum shopping for life insurance should look for critical illness cover, disability cover, and coverage in the event of a death. You should pay attention to what types of illnesses are covered, what the premium is, and how much money will be paid out upon a covered event like a death or a diagnosis.

You may also wish to look for a policy that allows you to get coverage for your children at a low cost or at no additional cost.

Can you add child coverage to a mum’s life insurance policy?

Many life insurance policies provided to adults allow them to add coverage for their children for a minimal cost or for no cost. Adding child coverage is advisable so you have financial protections in case your child becomes sick or passes away.

When does life insurance for mum’s pay out?

Your beneficiaries will receive the lump sum payment for your policy’s death benefit if you pass away. If you are diagnosed with a covered or terminal illness or illness that makes it impossible to work, you will receive a lump sum payout upon the insurer’s confirmation that you are covered.

How to shop for life insurance for mums

To shop for life insurance for mums, determine the types of coverage you need and the amount of coverage required. Compare policies from different provides to find the coverage that best meets your family’s needs.

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