76% of parents have no financial plan for dealing with lost income due to ill health
Yet 43% of parents are concerned that they or a member of their family could develop a serious illness
Parents are more likely to insure their pet (24%), phone (23%) and home contents (75%) than have income protection (13%) for themselves or their partner
Nearly half (45%) of parents with dependent children could not support their lifestyle for a month if the main breadwinner was unable to work
More than one in four families (27%) have experienced losing an income due to ill health, serious illness or death of a long term partner
Aviva’s Protecting Our Families report reveals nearly half (43%) of UK parents are concerned that they or a member of their family could develop a serious illness or condition, making this their second greatest fear after the rising cost of daily necessities (45%).
But three quarters (76%) of parents have no financial plan in place for dealing with a lost income due to ill health and 68% have no plan for dealing with the death of either themselves or their partner.
Parents are much more likely to insure the family pet (24%), mobile phone (23%) or the contents of their home (75%) or building (65%) than have private health insurance/dental cover (22%) or protection for ill health, such as critical illness cover (18%) and income protection cover (13%). Uptake of life insurance amongst parents is 46%.
Nearly half (45%) of UK families with dependent children1 could only survive financially for less than a month before their savings ran out if the main breadwinner was unable to work due to serious illness or death2.
More than one in four UK families (27%) say they have actually dealt with the reality of a loss of income due to ill health, serious illness or the death of a long term partner, with the experience leaving one in five (20%) thinking they will never recover financially again, or have no idea how long it will take.
Despite the harsh realities of facing a health crisis, many families would be ill-equipped to cope due to a lack of planning and available funds. 18% of parents with dependent children say they could not reduce their monthly spending at all and nearly one in four families (24%) have no savings to fall back on whatsoever.
Paul Brencher, Managing Director, Individual Protection, Aviva UK said: “With the pressures of modern living it’s very easy for parents to get side-tracked into only dealing with immediate challenges and problems, such as putting food on the table, and protecting material possessions. While these are all important, it is also essential that parents consider the long-term impact for their family if they were to fall seriously ill.
“We want to encourage parents, particularly those with dependent children, to consider how they would protect their family if the worst happened. This means considering all of their financial assets and commitments and ensuring they have put the necessary plans and protection in place, just in case they do face this situation at some point in their lives. Making small financial sacrifices now could ensure they are financially resilient for the future.”
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