Will Life Insurance Payout If My Child Dies?

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Posted 15th July 2021 by

When a loved one passes away, it’s often sad, stressful and painful, but the death of a child can magnify the grief. National Bereaved Parents Day, on the 3rd July, is an annual event to raise awareness of parents who have lost a child. In support of this important cause, we want to explore and highlight what financial options are available in the UK to support parents who may have to go through this horrible event.

Whilst life insurance will only payout for the death of an insured adult, most critical illness cover policies will also payout if the insured person’s child becomes ill or even dies. The money that is provided by insurers during such an awful and unexpected event can be a godsend, especially when funeral director fees start at £1,000 and memorials can easily cost upwards of £2,000.

Which insurers provide children’s funeral cover?

Most UK Critical Illness policies will provide a payout if your child requires a funeral. Children’s Funeral Cover is included as standard from Aviva, Canada Life, Legal & General, LV= and Scottish Widows.

Whilst AIG, Guardian, Vitality, Zurich and Royal London also provide children’s funeral cover, some of their Critical Illness policies don’t include this, so it’s important to check this and ask for it to be included, rather than make assumptions. One reason certain plans may not include this cover as standard is so they can provide a lower cost option.

Of the insurance plans which do payout for a child’s funeral, most pay a £5,000 contribution, whereas others pay £10,000.

Government support to pay for a child’s funeral

Whether or not you’re insured, if you are a legal resident of England, you can apply to the government’s Children’s Funeral Fund. This is a scheme to help towards the costs of a burial or cremation for a child under the age of 18, or a baby stillborn after the 24th week of pregnancy.

The Children’s Funeral Fund is not means tested. If you use a funeral director, it is likely they will claim on your behalf, otherwise you can claim the financial support yourself. It’s important to note that you will need to pay for everything initially and then reclaim the costs within six months of the funeral.

For those on low incomes who are receiving certain state benefits, there is additional financial support. The UK’s Funeral Expenses Payment can provide families with extra support towards burial fees, cremation fees, the cost of a doctor’s certificate, travel for the funeral and the cost of moving the body more than 50 miles within the UK.

James Holden

Experienced marketing specialist within Financial Services, having managed hundreds of effective digital marketing campaigns for numerous UK insurance and mortgage brands since 2016.

From creating the world’s first Pokémon Go insurance, to launching a new product category within the appliance insurance space, to designing chat-bots which compare homeowner loan rates… I enjoy making consumer finance accessible to all and fun where possible!

I joined Protect Line in early 2020, a time when a lot of people started to seriously consider life insurance for the first time. Our lives can change in an instant, often without warning, and I love working in an industry which supports families during their most difficult times.