Parents that fail to take out life insurance are putting their partners and children at financial risk, new research suggests.
Bringing up children is expensive, with more than £50,000 estimated to be spent on children before they reach the age of five, Sainsbury's Bank found. Also, parents would spend around £9.6 billion on children during the British summer.
The life insurance provider also estimates around a quarter of parents do not have any life insurance, which is extremely worrying given the high costs of bringing up children.
David Pickett, life insurance manager at Sainsbury's Bank, said it’s easy to underestimate how expensive it is to raise a child. "Parents need to consider how their families would cope financially should something happen to them," he said.
He explained that life insurance provides peace of mind in the knowledge that dependents would receive a cash lump sum if the life insurance policyholder were to die.
"Once you know what your requirements are, there’s nothing to stop you shopping around on the cost to make sure you’re not paying too much for your peace of mind," Mr Pickett noted.
Parents without life insurance cover risk leaving their partners with all the financial responsibility of bringing up the couple's children.
Parents without life insurance run high risk
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Parents without life insurance run high risk
Tue, 26 Jul 2005
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