Family protection planning

General guidance, not a personal recommendation. Lender criteria, insurance terms and costs depend on the product and your circumstances. Numerical examples are illustrations unless expressly identified as an individual quote. Check current terms with your adviser and tax or legal points with the relevant specialist.

Family protection isn't just about death, it's about making sure that if a parent dies or can't work, the family can still pay the mortgage, put food on the table, send the kids to school, and generally carry on. That means a combination of life cover, income protection, and often critical illness cover, structured to fit the actual shape of the family.

What the right structure looks like depends on your situation: dual-income couple vs single-earner; children dependent for 5 years vs 20; renting vs mortgaged; existing employer benefits vs self-employed. This guide covers the main scenarios.

Questions for different family circumstances

A protection review should consider each household's income, unpaid care, debts, dependants, existing benefits, savings and affordable budget. Two incomes do not necessarily mean either can support the household alone. Single parents and blended families may need particular care over who receives benefits and who manages money for children. Older households may have different debt and estate-planning needs. Product selection, policy ownership, beneficiaries and any trust should follow individual advice; there is no standard premium or package suitable for every family.

Trusts, wills, and structuring cover properly

Insurance cover alone isn't enough. How it's structured determines who receives the money, when, and whether it passes tax-efficiently. Three tools you need:

• Policy ownership and trusts. A suitable trust can allow trustees to handle policy proceeds separately from estate probate. Its tax effects and suitability depend on the policy, trust terms and family circumstances. Review trustees and beneficiaries and seek advice before setup or assignment; payout speed and inheritance-tax treatment are not guaranteed.
• A valid will. Without a will, intestacy rules decide where your estate goes, often not where you'd want. If you have minor children, appoint guardians in the will. Costs £150-£500 for a solicitor-drafted will. Essential for any parent.
• Lasting Power of Attorney (LPA). In case of mental incapacity. Separate from life insurance but critical if you're hit by illness rather than killed. Two types: Health & Welfare, and Property & Finance. £92 per LPA application to register with OPG from 17 November 2025; fee reductions or exemptions may apply.

Together with good insurance, these three tools form proper family protection. Without them, your insurance may pay out late, to the wrong person, or with significant tax cost.