Why do you need it?

 

The loss of a spouse or parent can leave dependants with financial as well as emotional issues to bear. If you are inadequately insured, your dependants may be left with a dramatically reduced household income, which could affect their quality of life. Potentially there may be difficulties in maintaining mortgage payments on a reduced income or reduced opportunities for children, including the ability to pay for a university education.

 

In the event of your death, a lending institution will not write off your debt. Rather, they will continue to pursue the debt through your dependants and could, ultimately, foreclose on the loan meaning the loss of the family home.

 

What will the State provide?

 

The main benefits the State may provide are the Widowed Parent's Allowance and Child Benefit. Depending on whether the widow(er) qualifies for Income Support, the State may or may not help with paying the mortgage interest.

 

The method for calculating the benefits for which an individual may qualify for is extremely complicated. More information is available at https://www.gov.uk/browse/benefits