Family life insurance

Life insurance for your family can come in various forms, from life cover for you to critical illness insurance for the whole family. If you have a family, then life insurance could provide a financial safety net in case you can’t be there to support them yourself.

The payout from a valid life insurance claim might help cover expenses. For example, large loans, household bills or simply maintaining your family’s standard of living.

Let’s take a closer look at life insurance for families, and how it could give you all more peace of mind.

  • If you’re new parents, have a growing family or your children are making their way in the world, life insurance could give valuable peace of mind.

    Life insurance could support your family in several ways in case you were to pass away unexpectedly.

    Covering mortgage payments for the family home

    Losing a family home can be a difficult time for any family. A life insurance policy could help cover any mortgage repayments in your absence. Your loved ones could carry on living in their home without the stress of carrying that large financial burden alone.

    It’s worth going over different types of life insurance to find the right one for your family. For example, if you’re planning to cover an interest-only mortgage, then a level term life insurance policy may be more suitable. On the other hand, a decreasing term policy may be more suitable for a repayment mortgage.

    Covering living and education costs for your children

    As a parent, you’ll want to give your children a solid start in life. Life cover for parents could help secure your children’s financial future, even if you’re not there. The lump sum from a valid claim might help pay for common household costs like clothes and food. Or you could use the money to pay for their education, until your kids are financially independent. For example, to help cover university fees and living expenses.

    Maintaining your family’s standard of living

    Without the protection of life insurance, your family might struggle to cover living costs in the event of your unexpected passing. Cover in place could relieve your financial pressures during a difficult period of grief.

  • Not sure if a family life insurance policy is right for you? Let’s look at some situations where a life cover might suit your needs:


    Family life insurance might be worth considering if you own a home with a mortgage. It could help your family cover the remaining debt if you weren’t there. Depending on the type of cover you select, a successful claim payout could also give you extra money to cover future household expenses.

    New parents with young children

    New parents might want to consider taking out a life insurance policy for their family, especially if they have very young dependants. The payout from a valid claim might help support the remaining parent by covering clothes, food, and childcare costs.

    Parents with older children

    Life insurance could help financially protect your children, regardless of their age. Even if they’re older and more independent, the payout from a life insurance policy could support them into adulthood. A lump sum from a valid claim might contribute to major life milestones. For example, buying their first home, getting married or having children of their own.


    Couples with shared financial costs and goals, could find a life policy useful, in case one of them were to pass away unexpectedly. The payout from the policy may help cover loans, bills, mortgage repayments, or any other shared financial commitments. A couple might consider joint life insurance, which covers you and your partner under a single policy. Just be aware that a valid claim on a joint life policy will pay out once, even if only one of the policy holders passes away.


  • There are different types of life insurance policies you could consider if you’re looking to protect your family’s financial future. These include:

    Term life insurance

    This type of policy covers you for a set period, as opposed to whole of life insurance. There are three types of term life insurance to choose from:

    • Decreasing term life insurance. With this policy, the potential payout decreases over time. That means it’s best suited to covering large, long-term loans, like mortgage repayments on the family home that decrease over time.
    • Increasing term life insurance. This type of term life insurance sees the potential payout increase over time, in line with inflation. This could protect your family in case living costs significantly increase in the future.
    • Level life insurance. With level life cover, the payout stays the same during the policy term. You might consider this policy if you want to know exactly how much your family could claim for in your absence.

    Whole life insurance

    Rather than providing insurance for a set period of time, like a term life insurance policy, whole life cover protects your family for as long as you live and maintain your policy. Because of this, it’s usually the most expensive type of life cover.

    Critical illness insurance

    Unlike life insurance, which provides for your family in the event of your death and a valid claim, critical illness cover could provide you with a payout. That’s depending on you making a valid claim after being diagnosed with a critical illness or condition covered by your policy.

    The money you receive could help to support you and your family. For example, while you undergo treatment or make necessary changes to your home.

    You can buy life and critical illness together, or separately. Always read policy documentation carefully before you go ahead, making sure it gives the cover you really need.

    Whatever cover you select, it’s important to know that your policy has no cash in value at any time. If no claim is made during the term, the policy will end and you’ll get no money back. If you don’t pay your premiums on time, the policy will end and you’ll get no money back.

    Our life insurance and critical illness cover policies are provided by Scottish Widows - who are also part of Lloyds Banking Group. They are our life insurance experts, helping to protect what matters most for over 200 years.

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Frequently asked questions

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