Think about everything you do for your loved ones week-in, week-out. The school runs, getting everyone fed, managing appointments, sorting childcare and keeping the house running. Then there’s your job, if you’re balancing paid work alongside it all.
Most of us don’t put a monetary value on these things. They’re just part of family life.
But when it comes to having protection, such as life insurance, those everyday responsibilities deserve just as much thought as your salary or mortgage. If you or your partner were no longer around, the other might need to reduce their work hours or make significant changes to the household’s budget.
Before deciding how much life insurance your family might need, it’s worth looking at what it would actually cost to keep them going.
Who really needs family life insurance?
It’s easy to assume cover is only needed for the person bringing home the biggest salary. Losing that income could make paying your mortgage, rent and bills much harder.
But what if you’re a parent who works part-time to collect the children from school? Or a stay-at-home parent who manages childcare while your partner works full-time?
Their contribution might not appear on a payslip, but replacing it could come at a considerable cost.
The same applies to single parents. If children depend on you financially, you need to consider who’d care for them and how their needs would be funded if you died.
Not every family needs a new policy. Savings, existing insurance and other financial support may already provide adequate protection. What really matters is knowing who depends on you and the difficulties your absence could create.
The hidden cost of childcare
Childcare is one example of an expense that can easily be underestimated.
According to Coram’s Childcare Survey 2026, the average weekly nursery cost for 50 hours of care for a child under two in England was £148.82, after accounting for the 30 funded hours available to eligible working parents.
That’s an average rather than a quote for every family, and eligibility also makes a difference. Still, it illustrates how quickly childcare can become a regular expense.
Eligible working parents in England can receive 30 funded childcare hours per week for 38 weeks of the year. However, this doesn’t necessarily cover every working hour or school holiday.
What could replacing childcare actually cost?
Imagine a household with two primary-school-aged children. One parent works full-time while the other handles most school pickups and holiday childcare.
If the parent responsible for childcare died, the surviving parent might need to arrange additional care.
Suppose this cost £150 per week during 38 school weeks, plus £250 per week for four weeks of holiday care.
That would mean:
- Term-time childcare: £5,700 per year
- Holiday childcare: £1,000 per year
- Total additional childcare: £6,700 per year
These are hypothetical costs, not national averages. Nevertheless, it shows how a parent who earns less than their spouse could still make a substantial contribution to the household.
How much life insurance might your family need?
Rather than choosing an amount based purely on your annual salary, start with the expenses your family would still face.
Housing is an obvious consideration. So look at whether the surviving parent is able to manage the mortgage or rent. Then think about food, utilities, transport, debts and the costs associated with raising your children.
You also need to consider what might change:
- Would someone need to pay for more childcare?
- Could the surviving parent continue working the same hours?
- Will they need financial support while adjusting to different circumstances?
The length of support can also differ between families. A family with a toddler could have very different requirements from one whose children are approaching adulthood.
If you’re looking to take out family life insurance cover, you can use these points when comparing policies, rather than opting for the largest payout or lowest premium.
Choosing between a single and joint policy
For couples, another question is whether to arrange separate policies or take out joint life insurance.
With two single policies, each person has their own cover. If both die while their respective policies are active, each policy could pay out, subject to its terms.
A joint life insurance policy, on the other hand, usually covers both people but pays out only once, after the first death, after which the policy ends. It can cost less than two separate policies, although the savings aren’t always substantial.
The key difference is what happens after that first payout.
If the surviving parent still has children depending on them, they may need to arrange new cover, potentially at a higher premium because they’re older or their health has changed.
Joint policies can also be complicated to deal with in terms of a divorce or separation. Both parties may need to agree on what happens to the cover.
What protection might you already have?
Before buying a new policy, check whether you already have some financial protection in place.
Your employer may provide death-in-service benefits, while an existing life insurance policy could still be useful. Savings may also help your family manage some expenses.
However, workplace benefits can change when you leave a job, and cover arranged before having children or moving home might no longer reflect your family’s needs. Check how long any existing policy lasts, what it pays out and who would receive the money.
What to ask before you buy…
Who would depend on the payout?
Think about your partner, children or anyone else who relies on you financially. Consider how they would manage without your income or the support you provide, particularly if they’re unable to cover household expenses on their own.
What additional expenses might arise?
Consider childcare, housing costs and changes to working arrangements.
For example, a surviving parent might need to pay for after-school clubs or reduce their working hours to look after the children, potentially affecting household income.
How long would support be needed?
Your children’s ages and your outstanding financial commitments could influence this. Younger children may need financial support for many years, while the remaining term on your mortgage could be shorter.
What protection do you already have?
Review any existing policies, personal savings and workplace benefits you may have before arranging any additional cover. You might already have a death-in-service benefit through your employer.
Check what these provide, how long the protection lasts and whether it still meets your family’s needs.
You can’t put a price on the care and time you give your children. But you can estimate what it might cost to replace some of the everyday support they depend on.
Image: Depositphotos
