It's doubtful that this lack of insurance is the result of a conscious decision not to insure, but more of a “one day” scenario. One day turns into another and there's never time to catch up with the demands of work, family and just getting on with life. For a young couple setting up home together, the time when you need to consider life insurance seems a long way off. Both working and on a fairly good income, everything's fine. A few years down the line and couple of children later, the situation's very different. You may both be working still, but you're probably in a bigger, more expensive house, driving bigger, more expensive cars. As you both work you may employ help with the children. You work hard, you play hard, enjoy foreign holidays and the children just love their ponies



Stop for a moment. Just imagine the unimaginable happening. Imagine your family receiving the worst possible news and being left to cope on their own.

Coping with that situation is overwhelming enough, but the devastation would be compounded if lack of sufficient insurance left your loved ones with financial problems too.

For the main breadwinner, insurance is absolutely crucial. In the situation outlined above, ample insurance for both partners would be advisable. It is possible to purchase single life or joint policies, which would cover both of you. A joint policy pays out only once, on the death of the first partner. Separate policies would insure each partner and pay out on the death of both. Individual cover would cost very little more than the joint option and would be a better bet.

Quite simply, to provide basic cover at this time in your lives, term assurance is probably the most popular choice. This type of policy remains in force for a set period – maybe until the time your family could reasonably be expected to gain independence, and when you could re-assess your life insurance needs. The death of the policyholder within this period results in a lump sum payment to the dependants and assures their financial security.

When working out what amount of cover you'll need, it's good idea to find out if there would be any entitlement to a “death in service” benefit. The payment could be as much as three times your yearly income if you are under retirement age. This should be taken into account when working out the final amount you're aiming for.

We're all familiar with the everyday expenses, mortgage payments, general bills, car expenses, holidays and child care. Maybe it wouldn't be possible for the surviving partner to continue to work full time, if at all. Take all these into account in your calculations. A sum which would pay off the mortgage and any loans and leave enough to invest to provide income for the period in which the children are likely to need financial support will be the minimum to aim for.

It's not normally necessary to undergo a specific medical examination prior to taking out a policy, unless there is a history of a serious illness or condition. Do be completely truthful in your answers. If the insurers discover that you have attempted to mislead them in any way at a later date, your insurance could be invalidated.

Life insurance costs have fallen in recent years and depend on various factors, such as age, sum assured and health. Prices vary and it's always a good idea to get several quotes. The easiest way to do this is to get onto an internet broker. In return for one session of form filling from you, they'll come up with all the help you need and as many quotes as you like.

You never know what the future can bring, but something you can do is to provide security for your family. For as long as they need it.