Every parent knows they should have a will. Same goes for life insurance. And yet both tend to collect dust on the mental to-do list for months or even years, pushed aside by school runs and mortgage payments and everything else that fills a week. The problem is that by the time something forces your hand, the window to act has already closed, and your family picks up the pieces with no plan in place.
- Unmarried partners receive no automatic inheritance under current intestacy rules.
- A basic mirror will is inexpensive and ensures your specific wishes are followed.
- Families often benefit from combining level term and decreasing term life insurance policies.
- Putting your life insurance policy in trust bypasses probate and avoids inheritance tax.
- Delaying your will and life insurance increases costs and leaves your family vulnerable.
If you haven’t got round to either yet, you’re in good company. But that gap between intending to do it and actually picking up the phone leaves your family more exposed than you’d probably expect. Here’s what’s actually involved, what you’ll pay, and how wills and life cover work better when you plan them at the same time.
Why a Will Matters More Than You Think
When someone dies without a will, intestacy rules take over. A surviving spouse in a married couple will receive personal possessions and the first £322,000 of the estate, with anything above that split between them and the children. On the surface, that might sound fair enough.
Look closer, though, and it falls apart quickly. If you’re not married to your partner, they won’t inherit a single penny automatically. Doesn’t matter if you’ve lived together for fifteen years or have four kids together. Intestacy rules give an unmarried partner zero legal claim to your estate, which is exactly why cohabiting parents should treat a will as urgent.
The government launched a consultation in June 2026 on reforming cohabitation rights, which could eventually give qualifying unmarried partners some automatic inheritance rights. But until any reform becomes law, the current rules stand, and a will is the only protection.
A basic mirror will for a couple, where each partner leaves everything to the other, typically costs £200 to £400 through a local solicitor, and online will-writing services can do it for less. It usually isn’t a long and complicated process.
You’ll name guardians for your children, set out who gets what, and make sure your actual wishes are followed instead of some default rulebook that was never written with your family in mind. If you’ve used equity release on your home, a will is also the place to make clear how whatever value remains should be shared out.
What Type of Life Insurance Do You Actually Need?
For parents, life insurance generally boils down to two choices: level term and decreasing term.
- Level term pays out a fixed lump sum if you die within the policy term. It’s the stronger option when you want money set aside for living costs, childcare, or other expenses beyond just the mortgage.
- Decreasing term costs less because the payout drops over time, roughly matching how a repayment mortgage shrinks. If your biggest worry is making sure the mortgage gets cleared so your family can stay in the house, this will usually be the cheaper route.
Most families with a mortgage and young children will benefit from combining both. A decreasing term policy handles the mortgage, and a smaller level term policy covers everything else on top. If your fixed-rate deal is ending soon, it’s worth checking whether you can remortgage if property prices fall, since the balance you owe determines how much cover you need. A healthy parent in their thirties can often get a solid level of cover for under £20 a month, which is less than most people spend on takeaway coffee in a week.
One thing to do when you set up the policy: write it in trust. That means the payout will go directly to your beneficiaries without waiting for probate, and it won’t count as part of your estate for inheritance tax purposes. Most insurers offer trust forms at no extra cost.
How Wills and Insurance Fit Into the Bigger Financial Picture
A will and a life insurance policy give you a strong starting point, but they’ll do a lot more for your family when they connect with everything else you’ve already got. Your pension, any savings, employer death-in-service benefits and your insurance all overlap in ways that aren’t always obvious. Getting financial planning advice from a qualified planner can help you see where those overlaps are, so you’re not paying twice in one area and leaving a hole somewhere else.
For example, many employers offer death-in-service cover worth two to four times your annual salary, and plenty of employees don’t even realise they have it. If that cover already exists, you might need far less personal life insurance than you assumed. A financial planner can look at the full picture and tell you exactly what’s missing and where you’re leaving money on the table.
Don’t Wait for the Perfect Moment
There’s no ideal time, and waiting for one is the exact reason this stays on the list for another twelve months. Life gets busy, income feels tight, and there’s always something more immediate competing for your attention. But the cost of a basic will and a term life policy is tiny compared to the mess your family would face without them. If budget is the sticking point, a simple cash flow forecast will show you exactly where a small monthly premium can fit.
Here’s the thing most people don’t consider. The price of life insurance goes up every year you delay, and your health isn’t guaranteed to stay the same either. A parent who applies at 32 in good health will pay significantly less than the same person applying at 38 with a new diagnosis on their medical record.
The will is even simpler, because the price doesn’t change; you just need to actually book the appointment. Get both done in the same month if you can. Your family won’t care that it took you a Saturday afternoon. They’ll care that you did it.
ALSO READ: What Is ISA Allowance? How To Open An ISA Account And When Does ISA Allowance Reset?
FAQs
Q1. What Happens If You Die Without A Will In The UK?
If you die without a valid will, your estate is distributed strictly according to statutory intestacy rules, meaning cohabiting partners inherit nothing automatically and courts may decide who cares for your children.
Q2. Does An Unmarried Partner Automatically Inherit My Estate?
No, under current UK law, cohabiting unmarried partners have no legal right to inherit any part of your estate without a valid will.
Q3. How Much Does A Basic Will Cost In The UK?
A standard mirror will written through a local solicitor typically costs between £200 and £400, while reputable online will-writing services can cost considerably less.
Q4. What Is The Difference Between Level Term And Decreasing Term Life Insurance?
Level term insurance pays out a fixed lump sum throughout the policy, whereas decreasing term payout drops over time to align with a shrinking repayment mortgage.
Q5. Why Should You Write A Life Insurance Policy In Trust?
Writing a policy in trust ensures the payout goes directly to your named beneficiaries without waiting for probate, and it keeps the payout outside your estate for inheritance tax purposes.
A quick note: The value of investments and any income they produce can fall as well as rise, and there’s no guarantee you’ll get back what you originally put in. How investments have performed in the past isn’t a reliable guide to what they’ll do in the future.
Sources & References
- MoneyHelper. Independent guidance on life insurance types and estate planning.
- Legal & General. Detailed explanations of trusts, life insurance, inheritance tax, and death-in-service benefits.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute formal financial, legal, or estate planning advice. This content is not intended for promotional purposes or to endorse specific products or providers. Readers should independently verify all facts and consult with a qualified financial advisor, solicitor, or insurance professional before making any financial or legal decisions.
