Contact us: 01799 543222

Most households struggle after 7 months if a mother can’t work

Archive for the ‘Protection’ Category

Most households struggle after 7 months if a mother can’t work

Thursday, October 26th, 2017

Recent research carried out by Scottish Widows has found that three quarters of UK households would only manage to cover their bills for seven months if the income of the woman in the family was lost through death or illness. In addition to the financial ramifications, women spend almost an entire day (23 hours) each week carrying out household chores and caring for children, which the family would struggle to carry out or pay for were she no longer there to do these vital tasks.

Despite these statistics, Scottish Widows discovered that less than a third (31%) of women in the UK have a life insurance policy, with less than one in ten (7%) holding a critical illness policy. The most popular reason for women not taking out such cover is them not seeing it as a financial priority or simply not believing that it was needed. More worryingly, over half (54%) of the women surveyed did not have a will in place.

The survey also asked what would happen should a partner find themselves out of work for six months, with a quarter of respondents stating they would have to rely on state benefits to cover household expenses. 68% of the women surveyed admitted to not being able to save for the long-term future due to the need to pay for other things.

“One of the most important things a woman can give her family is security, but financial protection is still too far down the priority list because women simply don’t recognise their own value,” said Scottish Widows’ protection director Jackie Leiper. “It’s crucial that everyone – no matter what stage of life they’re at – considers whether they have the right protection in place to ensure their loved ones aren’t left coping with financial strain on top of emotional trauma if the worst were to happen.” Reacting to the findings of the research, Ms. Leiper also emphasised the “need to recognise the monetary value of women’s time and effort in the household, and to safeguard it accordingly.”

‘Protecting our families’ report – Aviva

Friday, April 7th, 2017

Aviva have just published their report into family finances including:

  • How families would cope in unexpected circumstances
  • Families perceptions of government support
  • The spending priorities of families

The key findings are worrying:

45% of parents with dependent children could not support their lifestyle for a month if the main breadwinner was unable to work.

Nearly one in four families (24%) have no savings to fall back on whatsoever and nearly one in five (18%) families could not reduce their monthly spending at all.

One in five (20%) of parents who have experienced a financial loss due to a health crisis don’t think they will ever recover financially or have no idea how long it will take.

You can find a full copy of the report here.


A necessary protection review

Monday, December 22nd, 2014

key-stages-imgNow is the time to review your protection requirements in the light of inflation and changes in your personal circumstances over the year.

Most life insurance cover is not inflation linked. More important, however, is that the risk of a serious illness or death increases with age. There is a 1 in 50 chance of any 40 year old dying within the next ten years but by the time we reach 50 the risk increases to 1 in 25. Compare these with the odds of 1 in 26,000 for winning even £25 with Premium Bonds.

Is your current life assurance cover enough to repay the mortgage and any other debts in the event of your death? Will it also provide your wife or husband or civil partner with sufficient additional capital to replace your lost income for the next few years – or longer if you have dependent children? Are you making plans for the future, perhaps for your children and would these plans be likely to fail if you died prematurely or were seriously ill and not able to work? It is worth treating this review with the seriousness your family deserves.

Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up and you may not get back the full amount you invested.