Parents not insuring against uncertainty

08 August 2005
New research has revealed that UK families are overlooking important financial products such as life insurance, thus leaving the door open for financial problems should a major life event happen.

Scottish Widows found that 35 per cent of parents have no life insurance, while and 72 per cent have no insurance if they became critically ill or are unable to work.

Most notably, what could cause greatest concern is that 2.2 million UK parents have a mortgage but do not have any associated life insurance, thus putting the family home at risk.

Scottish Widows has advised parents to review their financial situation after any major life event, and the financial implications of such an event.

Nick Kirwan, director of protection marketing, said: "People should undergo a full financial review following a major life event such as having a child, moving house or even changing jobs, as these will invariably affect the kind of products you need.

"It is worrying that parents are more likely to review their credit cards than their financial protection, but what is more concerning is the wider issue that a third of the nation’s parents have left themselves completely unprotected."

Mr Kirwan continued: "In particular I am astounded at how many parents have a mortgage that is unprotected – in a worst case scenario this means that families are putting the roof over their heads at risk.

"The cost of bringing up a child is expensive – however the costs that dependents would face during a time of need would be far greater."

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