Caring for your baby is the most important of jobs, and can be an all-encompassing way of life. Childcare, particularly in the early years, can easily be described as a more than full-time occupation, requiring all of your time and then some!
Planning for The Long Term Care of Your Child
Given the rigours of the regular schedule, finding time for some of the more long term planning required to meet the ongoing needs of your child can seem difficult if not impossible.
Arranging adequate life insurance is often one of those tasks that is relegated to the back burner, but unfortunately this approach will most often not serve you well.
The bottom line is that you need to know that your children will not suffer financially as well as emotionally if the worst happens and one or both parents or carers are suddenly not around.
While it is possible for some to develop substantial savings and investments for his eventuality, often the most affordable means of making such arrangements is through life insurance – and the sooner you sort out this cover, the more affordable it will be.
At the most basic level, you need to ensure that bereavement will not be compounded by the devastation that can result from the loss of the family home, due to an inability to meet mortgage payments. In these tough economic times, it can be hard to see where additional funds for such cover will be found.
However, there are several life insurance products offered by providers like Santander that can come in at the most affordable end of the spectrum, and fit the bill when it comes to financially protecting your family.
Decreasing term life cover is often the cheapest form of life insurance, and is ideally suited to covering large, long term, steadily declining debts such as a mortgage. ‘Term’ means that there is a finite period of cover.
The end of the term is usually set to coincide with the time when mortgage payments will finish and the debt will be paid off. The ‘decreasing’ part denotes the fact that the sum payable, in the event of a claim on the policy, gradually decreases over the life of the term.
Again, this decreasing sum assured will track the gradually declining amount of outstanding mortgage to be paid, ensuring adequate cover whenever the worst happens, if it happens.
The finite nature of the policy also means that should you happily survive the term, there will be no further chance of a successful claim. The life insurance contract will be over, and the payments made towards the policy a matter of historical fact.
This is precisely the reason that term life polices can be offered at such affordable rates, as you are statistically likely to survive the term, and thus cost nothing in claim pay-outs to the insurer.
If you don’t like the idea of regular premium payments potentially amounting to nothing, and want an investment element to your life cover, you will need to spend more money. This is where getting started early with life insurance can really help your regular budget, as the sooner the policy starts, the cheaper the regular premium payments will be.
Whole life insurance is the most comprehensive and expensive cover, as the policy will eventually pay out, whenever you die. For a generally more affordable option, endowment life cover combines a fixed term life insurance policy.
This cover with an endowment investment element that matures and has a surrender value once the term comes to an end. For more money guidance, check out Financial Advice.