For many clients, starting a family is a joyous time filled with happiness and new experiences. However, it can quickly become apparent how expensive it is to raise children and the new financial responsibilities that creates. For advisers, this life stage represents a key opportunity to revisit protection needs and ensure appropriate cover is in place to support growing families.
To support these conversations, Legal & General has created a guide designed to help educate new parents on the different types of life insurance, which can enable more advanced, informed decision-making and support from advisers.
Why is life insurance important for new parents?
The reasons to purchase a life insurance policy greatly increase once having children, the policy may provide you with invaluable peace of mind.
Life insurance could help you cover:
Accommodation – Your family’s housing costs such as a mortgage, rent or bills can be covered by a life insurance payout.
Education and hobbies – School fees and clubs at any age can be paid by the money awarded from a policy. If you are looking at privately educating your children, this could be a major consideration when deciding on a policy. In the UK, the average cost for a private school is £18,456 (Statista, 2025) with the average cost of a part time nursery place for a child under 2 still being £3,667 (Coram, 2025).
Do I need to change my life insurance when my baby is born?
Once your child is born, or adopted, your expenses are likely to increase with the costs of clothing to childcare. Reassessing your cover is a good idea to ensure your loved ones will still be adequately covered in the event of your or your partner’s death. You may be able to modify your existing cover to adapt to your new circumstances.
The best life insurance for new parents
Life Insurance – This is a cash sum that will be paid out to beneficiaries if valid cover is in place at the time of death. The sum remains the same unless you choose to change the policy. The sum can be used to help pay off mortgages and everyday expenses.
Decreasing Life Insurance – This type of policy acts the same as Life Insurance however it is designed to cover mortgage repayment instalments. Therefore, the policy cover decreases along with the amount left on the mortgage.
Critical Illness Cover – This is an additional premium on top of a Life Insurance or Decreasing Life Insurance, policy. In the event of being diagnosed with some specified illnesses, this policy can help to cover costs, if you must take time off work to recover.
How much you pay monthly is dependent on which of these various policies and additions you choose as well as personal details such as health and age.
Although the need and cost for cover can vary greatly depending on personal circumstance, Life Insurance can help to protect any new families against financial hardship in the untimely passing of a parent. During an emotional and difficult time, Life Insurance can give you and your loved one’s invaluable peace of mind. To find out more about life insurance to protect you and your family, please visit here: Life insurance for new parents | Legal & General
