How to Protect Your Family with the Right Insurance Policies

Why Family Protection Matters

Life is unpredictable—and while we can’t prevent the unexpected, we can prepare for it. Having the right insurance policies in place ensures your family is financially protected in the event of illness, injury, or death. For families across the UK, especially those with children, mortgages, or dependents, protection insurance provides crucial peace of mind.

At Rise Wealth, we believe that protection is not just about ticking a box—it’s about safeguarding your family’s future.

What Are the Essential Insurance Policies for Families?

There are three key types of insurance that every family should consider:

1. Life Insurance

Life insurance pays a lump sum or regular income to your family if you pass away during the policy term. It can cover:

• Mortgage debt

• Day-to-day living expenses

• Children’s education

• Future milestones

Popular types of life cover:

• Level Term Insurance: Pays a fixed sum if you die within the term.

• Decreasing Term Insurance: Suited for repayment mortgages, the payout reduces over time.

• Family Income Benefit: Pays a monthly income instead of a lump sum.

• Whole of Life Insurance: Guarantees a payout whenever you die (used often in inheritance planning).

How much cover do you need? A good starting point is 10 to 12 times your annual income, but this varies based on your debts, lifestyle, number of dependents, and long-term goals.

2. Income Protection Insurance

What if you couldn’t work for months—or even years—due to illness or injury?

Income protection replaces a percentage of your salary (typically 50–70%) until you return to work or retire.

Why income protection is vital:

• Statutory Sick Pay is only £116.75 per week (2025/26).

• NHS staff may have initial sick pay, but it reduces over time.

• Self-employed professionals (including locum doctors) often have no employer sick pay.

Look for:

• A short deferral period (e.g., 4 to 13 weeks) for faster payout.

• Own occupation cover, so you’re protected if you can’t do your specific job.

• Guaranteed premiums for long-term cost certainty.

3. Critical Illness Cover

Critical illness insurance pays a tax-free lump sum if you're diagnosed with a serious illness like cancer, stroke, or a heart attack.

This money can help you:

• Cover private medical costs

• Adapt your home

• Take time off work to recover

• Protect your family's financial stability

What to check:

• Number of conditions covered

• Partial payouts for early-stage illnesses

• Child cover included as standard

Other Family Insurance Options Worth Considering

While life, income, and critical illness cover form the core of a protection plan, some families benefit from more specialised options:

Mortgage Protection Insurance

A simple way to clear your mortgage if you die—usually structured as decreasing term assurance to match your repayment mortgage.

Private Medical Insurance

Provides quicker access to treatment and private healthcare facilities. Especially useful for families with young children or those who value short waiting times.

Children’s Critical Illness Cover

Often available as an add-on to adult policies. Helps you take time off or afford extra care if your child becomes seriously ill.

Choosing the Right Protection for Your Life Stage

Young Families

With new mortgages, childcare costs, and a reliance on one or both incomes, protection is critical. Focus on:

• Life cover to protect dependents

• Income protection for both parents

• Critical illness to reduce financial strain during illness

Growing Families

As your income rises and your family grows, review your cover regularly to:

• Increase sums insured

• Add new types of cover as needed

• Consider educational or lifestyle milestones

Pre-Retirement and Later Life

When the mortgage is repaid and children are independent, you may shift focus to:

• Inheritance tax planning with whole of life policies

• Long-term care planning

• Cover for a surviving spouse

Common Insurance Mistakes to Avoid

1. Assuming Workplace Cover is Enough Many employer schemes are limited in duration or amount. Always check the details.

2. Forgetting Income Protection Statistically, you're more likely to be signed off work for a year than to die early. Income protection bridges that risk.

3. Not Using a Trust for Life Insurance A trust ensures the payout is tax-free and avoids probate delays.

4. Letting Old Policies Gather Dust Life changes—so should your insurance. Review every couple of years or after major milestones.

Why Work With an Independent Financial Adviser?

An independent financial adviser (IFA) has access to the whole of the market—not just one provider. At Rise Wealth, we help you:

• Choose the right policies based on your real needs

• Avoid unnecessary costs and over-insurance

• Write policies into trust for tax efficiency

• Integrate insurance into your full financial plan

Get Expert Advice on Protecting Your Family

Insurance can be complex—but it doesn’t have to be. The right protection policies give you confidence that your family will be financially secure, no matter what life brings.

✅ Need a tailored protection plan?

✅ Want to review your existing cover?

✅ Not sure what insurance you actually need?

Speak to an adviser at Rise Wealth today. We’ll help you put the right cover in place for your family, your income, and your future.

📞 Book a free initial consultation 

📍 Independent advice, based in Harrogate, supporting families UK-wide 

🛡️ Financial planning that puts protection first