GuidesFamily protection gap
The difference between what is covered and what the household would need
The Family Protection Gap: What If a Household Income Stops?
A protection gap is the difference between what a household would need if an earner's income stopped, and the coverage actually in place. It is one of the least visible financial risks a family carries — nothing about it shows up in a bank balance until the day it matters.
The estimate is arithmetic, not guesswork: outstanding mortgage, remaining education costs, and several years of household living expenses, minus whatever life or income cover is already listed.
Estimating household need
A common starting estimate adds the mortgage balance, any remaining education funding gap, and roughly five years of living expenses. A household with a £200,000 mortgage, a £30,000 education gap, and £40,000 annual living costs arrives at a need figure near £430,000.
Compare that against the cover listed today — employer death-in-service benefits, existing life policies — and the difference is the gap. For many households the number is large enough that knowing it is the valuable part, whatever is done about it next.
What protection typically covers
Life cover addresses the permanent case: the household keeps the house and the plan if an earner dies. Income protection and critical-illness cover address the interrupted case: an earner alive but unable to work for months or years — statistically the more common disruption.
Renewal windows matter too. Policies approaching renewal are moments when cover amounts, exclusions, and premiums all change — a gap can appear or grow silently at a renewal nobody reviewed.
- Life cover — the permanent-income-loss case
- Income protection — the unable-to-work case
- Critical-illness cover — the large-one-off-cost case
- Renewal review — the quietly-changed-terms case
How Keel checks this
Keel computes the same need estimate — mortgage plus education gap plus five years of living expenses — against the cover in a family's profile, and flags when listed cover falls below it, when no income protection is listed, and when a policy renewal window is approaching.
Common questions
How much life insurance does a family need?
A common estimate is outstanding mortgage plus remaining education costs plus several years of living expenses, minus existing cover. The right figure depends on dependents, debts, and goals — a licensed insurance professional can evaluate your household's need.
What is the difference between life insurance and income protection?
Life insurance pays out if the covered person dies; income protection replaces part of an income while someone is alive but unable to work. They cover different disruptions and many households consider both.
Who actually needs this cover?
Households where people depend on an income — dependents, a mortgage, education plans. A single renter with no dependents may have little need; a licensed professional can confirm either way.
How do we fill a gap if we find one?
Compare quotes from multiple insurers and consider speaking with a licensed insurance broker who can assess the household's coverage needs. Product and provider choices are individual — Keel surfaces the gap; licensed professionals advise on filling it.
Put your family on the chart — free to start, no credit card — and see which of these areas look light for your household.
Start freeThis guide is general information, not financial advice. Product and provider choices are individual — a licensed professional can evaluate your household's situation.