According to recent research by Scottish Widows, 53% of men in the UK with dependent children have no life insurance.
3.9 million Dads (a number that makes this research very real indeed) are potentially putting their family’s financial security at risk should the unexpected happen. Like many money matters, thinking about life cover isn’t a particularly glamorous subject. However, it is essential topic of conversation if you wish to take steps to provide a secure future for your family.
The research also shows that only 16% of Dads have a critical illness policy in place, leaving many more millions at financial risk if they were to become seriously ill. What is even more interesting is that fathers are more likely to insure their mobile phones (21%) than to insure themselves against serious illness. You might want to read that statistic again to let it sink in!
Having no financial plan in place for the unforeseen scenario of a serious critical illness leaves families in a vulnerable position. Again, what is more worrying still is that many Fathers don’t plan to change this anytime soon and don’t consider having insurance as a necessity.
19% don’t think they need it
18% don’t see critical illness cover as a financial priority
17% say they can’t afford it.
Further concern should be noted when only 42% say that their current savings would last for a maximum of just three months. (Scottish Widows, June 2017)
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. Whilst 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 to avoid the need to dip into our savings, which could present even greater challenges further down the line.
This research also poses the question of Dads that are currently ‘covered’. Do they have the correct or adequate cover for their family? If you have a growing family, have you looked at increasing your cover to adapt to your updated situation? If you have a pension with your employer and believe that this is part of the cover, now is the time to check. Buying Critical Illness Cover isn’t the first thing on our mind when we wake up. Often the only time we are forced to think about Life Cover is through life-changing events, such as taking out a new mortgage or the arrival of a new baby.
Don’t be put off by thinking such cover will be too expensive. It will probably cost you less than the price of insuring your mobile phone!
If you would like to discuss Critical Illness Cover for your family, or any aspect of personal finance, please get in touch with us on 01302 244 977.
This information is intended to provide a general review of certain topics and its purpose is to inform but not to recommend or support any specific investment or course of action. The tips may not apply, or be suitable, to everyone and you should contact us for advice if you are unsure whether this is the case.
Ethos Financial Solutions Ltd are authorised and regulated by the Financial Conduct Authority.Publish date: 25th April 2018