Molly Mae and Tommy Fury have welcomed their second baby, and it’s got us thinking. Welcoming a new member into the family has a way of making you ask questions you’ve been putting off. Do we have the right protections in place? Would our family be okay if something went wrong?
It’s one of those big life moments – buying a home, getting married, losing someone – that makes everything feel real.
Molly is also self-employed, the primary earner, and not married. Two children now depend on her income. So what should she, and anyone in a similar situation, have in place to protect her family?
An emergency fund
The fund that keeps your family afloat when life doesn’t go to plan. A broken boiler, a slow month of work, an unexpected bill, your emergency fund handles it so you’re not reaching for a credit card under pressure.
For self-employed parents this isn’t optional. You don’t have sick pay to fall back on so your emergency fund becomes your sick pay. Aim for at least three months of expenses, ideally six.
We’ve got a full guide on building yours here.
A maternity fund
If you’re self-employed and pregnant, statutory maternity pay works very differently to how it does for employees. You need to plan ahead and build up money specifically to cover that period of reduced income.
A maternity sinking fund, started as early as possible, gives you breathing room to actually enjoy those early weeks. We’ve covered this in detail here.
Life insurance
Life insurance pays out a lump sum or regular income to whoever you name as your beneficiary if you were to die during the policy term. It means your children are financially protected even if the worst happens. The sooner you get it, the better. Premiums are typically low when you’re young and healthy, and can get more expensive the longer you wait.
Think about your debts, your rent or mortgage, childcare costs, and how long your children would need support. That’s your starting point for working out how much cover you need. LifeSearch, who we work with, can help you figure out the right amount for your situation.
A will
If you’re not married, your partner has no automatic legal right to your estate if you die without a will. It doesn’t matter how long you’ve been together or how many children you share. Your assets, your savings, even decisions about who looks after your children could all be left unclear.
A will sorts all of that! It’s not morbid, it’s one of the most practical things you can do for your family.
You can get yours sorted with our friends at Octopus Legacy here.
A Junior ISA
A Junior ISA lets you save or invest up to £9,000 a year for your child, completely tax-free, locked away until they turn 18. If you start early, compound interest does a lot of the work for you.
It’s also a great way for grandparents and family to contribute. Point them at the JISA instead of another cuddly toy.
Nobody wants to think about worst case scenarios with a newborn in their arms. But sorting this stuff is how you protect the best case one.
This content is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.
Financielle is an Introducer Appointed Representative of LifeSearch Partners Ltd, which is authorised and regulated by the Financial Conduct Authority. FCA Registration Number: 656479.
Featured image: @Mollymae Instagram