Children Under Risk due to Lack of Life Insurance

Wednesday, January 27, 2010

Bright Grey, the insurance provider, has conducted a study to assess the situation of children living in Great Britain. The study discovered that millions of British children are facing risky futures in the event of something happening to their parents. The exposure comes from parents not safeguarding against critical illness or death and they are running the risk of leaving their dependents financially very vulnerable.

In response to the study’s questions, ten percent of those surveyed said that they fully expected their dependents to use savings accumulated by the family. In principle, this appears financially sound. However, with the average family typically saving approximately £1,000 last year, there is a disconnect with how long savings would last for those left behind. Parents seem not to have considered how their dependents would financially survive should the income from the main provider suddenly disappear.

The current financial climate has of course taken its toll on the family income and has played a huge role in parents not securing life insurance or critical illness cover. Even though this leaves their children at risk, there is an obvious reason why policies are not being purchased. However, this is potentially disastrous in the long term. Life insurance policies and critical illness cover costs have been becoming more competitive over recent years and the prices might surprise parents when they start their research.

It is a difficult subject to discuss and not one that people want to linger over, however, life insurance and critical illness cover are vital for the protection of the family and they represent a financial decision that is very important to get right.


Duncan Campbell