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Alarming number of mums with no life cover

Everyone’s circumstances are different, but most people start to think about cover to help protect their family financially once they have children. However, research from Scottish Widows reveals that 60% of women in the UK with dependent children have no life cover, leaving their families in a precarious situation should the worst happen.
The research also shows that only 13% of mums have a critical illness policy, leaving many more at risk of financial hardship if they were to become seriously ill.
Placed at financial risk
31% of the mums surveyed admitted that their household would be placed at financial risk if they lost their income due to unforeseen circumstances. 25% claimed they could only pay their mortgage for a maximum of three months, whilst 39% said they would have to use their savings in such adverse circumstances. The research also suggests that many mothers are underestimating the value of their role within the household. 24% said that they haven’t taken out life insurance because it’s not a financial priority or they don’t think they need it. And 7% of mums without critical illness cover say they’d rather take the risk of not having it than take out a policy.
Everyday responsibilities
On top of any day jobs, mums spend almost 23 hours a week on childcare and chores such as school runs and housework – tasks which they believe their families could not afford to pay for should the worst happen to them. 61% of women with dependent children also say their household would struggle to complete everyday responsibilities or pay household bills if they were to fall ill or pass away. Lack of planning is leaving many families in a vulnerable position. When asked how they’d cope should they or their partner not be able to work for six months, 29% said they’d rely only on state benefits and 57% don’t have the protection of a Will or guardianship arrangement in place for their families.
Bereavement Support reduction
With a new Bereavement Support Payment system now in place, which may result in a significant reduction in the period over which support will be available, it’s more important than ever for mothers to review their financial protection needs. This is especially the case for cohabitees, who still don’t qualify for bereavement benefits. The value of protection is to provide long-term peace of mind about having financial security in place for your dependents. Changes to bereavement benefits mean that it’s more important than ever for mothers to review their financial protection needs and seek advice to make sure their family and household is covered.
Is your family protected financially?
Whether you’re simply planning ahead or already have children, raising a family can mean big changes to your family finances. It may be difficult to think about, but if something were to happen to you, you’d want to know your family is protected financially
Please contact Matthew Bromley, Chartered Financial Planner at Cowgills Wealth Management for further advice or to discuss your situation.
 


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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The information was correct at time of publishing but may now be out of date.

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Posted by Cowgills
22nd August, 2018
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