Meaning that 3.9 million Dads1 are potentially putting their family’s financial security at risk if the unexpected were to happen.The research also shows that only 16% of dads have a critical illness policy, leaving many more millions at financial risk if they were to become seriously ill. Fathers are, in fact, more likely to insure their mobile phones (21%) than to insure themselves against serious illness.
More than a fifth (22%) of dads admit their household would be placed at financial risk if they lost their income due to unforeseen circumstances, and 28% say they could only pay their household bills for a minimum of three months. Two-fifths (40%) say they’d have to dip into their savings to manage financially, but 42% say that their savings would last for a maximum of just three months.
Johnny Timpson, protection specialist at Scottish Widows, says: “Our research shows that in the event of themselves or their partner dying, 22% of men with dependent children believe they could rely on state benefits to support their family. While this provides a basic level of support, we would firmly advise people to make their own provision for themselves and their families in order to provide peace of mind with the knowledge that there’s a financial safety net in place. “No matter what our personal circumstances, it is vital for all of us to ensure we have an appropriate plan in place to protect our finances, helping avoid the need to dip into our savings, which could present even greater challenges further down the line.”
Many fathers don’t consider having insurance as a necessity, with 18% saying they don’t see critical illness cover as a financial priority, 19% saying they don’t think they need it and 17% saying they can’t afford it.
With a new Bereavement Support Payment system now in place, it’s more important than ever for dads to review their financial protection needs. It’s estimated that 91% of widowed parents will be supported for a shorter period of time, now just 18 months, than they would under the previous system, which could pay out until the youngest child leaves school, according to research from the Childhood Bereavement Network. In 2014, 70% of claimants were female2 , so it’s important that fathers seek advice to make sure their household is covered.
This is especially the case for cohabitees, who are not eligible to claim for bereavement benefits, despite the fact that 21 per of couples with children are not married, according to figures from the Office for National Statistics for 2016. Scottish Widows paid out 99.38% of life claims and 93.2% of critical illness claims in 2016. A total of more than £211 million was paid out, an average of more than £4 million per week. The number of claims paid for life cover was 7,569 and for critical illness it was 2,030,
equating to a total of 9,599 individuals and their families being helped to manage the financial and emotional impact of critical illness or death.
1Percentage of adult population that are fathers with dependents = 735/5077 = 14.48%; 14.48% of adult
population of 51,339,000 = 7.4 million; 53% of these don't have cover so 3.9 million
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