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Do Working Women Need Life Insurance?

Life Insurance for Mums

If you are a woman, it is quite likely that you have as great a requirement for life cover as a man. Let us be honest, the days are long gone when it is perceived that the man in the house is always the main breadwinner as more and more women need to work to support the family from a financial perspective.

So, why don't we take a look at some of the reasons why a female needs life insurance: -

Pay off the mortgage

If you are single, have a successful career and are on a very good salary, you have probably been able to buy your home but like many people have had to take on a mortgage to help fund the purchase. Your initial thoughts may be that, if you were to die, the mortgage would be cleared from the sale proceeds of the property. However, for minimal monthly outlay, you may be able to arrange some life cover sufficient to clear the borrowing meaning that when the property is sold the sale proceeds would form part of your estate for the benefit of say your parents, brothers or sisters whom you are no doubt fond of.

You may be a single, working mum with one or more children and have a mortgage to pay for. So, if you were to pass away, wouldn't it be sensible to have some life insurance in place to pay off the mortgage thus providing some financial stability for your children?

You and your partner may have a joint mortgage so it would be a good idea to have life cover in place so that if either of you were to die the mortgage is cleared. If you have children and you died your partner would be able to use the money that was being spent on mortgage repayments towards paying for childcare.

Family protection

Whether you are a single working mum, a stay at home mother or a mum with a partner you need to ask yourself the question – "If I were to drop dead tomorrow where would that leave my family financially?

For instance, if you are a stay at home mum, what would your partner do about looking after the children if you were to die? Would your partner want to give up work and look after them? If so, your partner would loose their earned income and be in receipt of state benefits. If your partner wanted to carry on working who is going to look after the children - other family members or would professional childcare be required?

Unless you have a significant sum of money in savings and investments or your partner is on a huge income that would be enough for the family to live off, something needs to be sorted out. A potential solution is to take out a life insurance policy that would pay out sufficient monies to help support your children and/or partner financially to make their lives more comfortable.

Pay for school fees

If you were fortunate enough to have been educated privately, it is quite possible that you will want to do the same thing for your children. If you are on a substantial income as a working mum, you may already be paying for school fees but what would happen if you were to die? If you have a partner, would there income alone be sufficient to pay the school fees? If you are a single mum, who would pay for your children's school fees- your parents?

Well, you will be pleased to read that life insurance could provide the solution. For instance, you may wish to consider taking out a level term life insurance policy for a sufficient sum to cover the estimated cost of the school fees that would be payable over a number of years. This is a complex area of financial planning so you may wish to obtain some professional advice.

Pay for your funeral

In the event of your untimely demise whilst you are a mother, the cost of burying or cremating you will need to be met. The cost of a funeral runs into thousands of pounds these days so you are not going to want to leave the burden of finding the money to your grieving family and relatives. Yes, you could sort out a funeral plan but another option is to take out some life cover that may be used to pay for your funeral.

Clear other debts

If you are a high earning executive who has to manage your work along with being the proud single mother of two young children then it is quite possible that over a period of time you may have accumulated a number of other liabilities apart from a mortgage. For instance, you may have a £30,000 car loan for a BMW 5 series, you may have two or three credit cards on which you owe £10,000 and finance of £3,000 for a new, luxury three-piece suite.

What would happen to those liabilities in the event of your untimely death? The car could be sold but it probably wouldn't clear the amount outstanding on your car loan due to the value of such an asset depreciating rapidly.

A solution could be to arrange some term life insurance sufficient to clear all such liabilities in the event of your death.

What to do next?

Well, if you can relate to one or more of the above situations then you will be pleased to read that it is often a quick and easy process to arrange some life cover. There are so many providers of life insurance here in the UK that you are almost spoilt for choice. You can obtain quotations in a number of ways such as through an independent financial adviser, using a price comparison website or you may wish to consider the likes of Bequest that has an innovative way of helping you arrange term life insurance.

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FF Bequest Limited, trading as Bequest, is authorised and regulated by the Financial Conduct Authority with firm reference number 923791. You can check our authorisation on the FCA Financial Services Register by visiting the following website: register.fca.org.uk . We are registered in England and Wales, Registered office address: Founders Factory, Northcliffe House, London, United Kingdom, W8 5EH. Company Number 12367897.

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