Tackling misconceptions to improve family protection
Over a third of British families (37%) have never discussed with their partner or another family member what will happen to their dependent children if either of them dies, according to research commissioned by Tesco Bank Life Insurance.
Parents' reluctance to face up to questions about their own mortality is just one part of the ‘family protection gap' identified in the research. Over 40% of all parents with children under the age of 18 do not currently have life insurance, with 60% of these parents citing one or more of the money worries listed as a key reason for not doing so.
Of the parents surveyed who don't have life insurance, over a fifth (21%) focus on daily finances rather than looking at their longer-term financial planning perhaps because they don't realise how affordable it can be - 39% of those who don't have life insurance indicated that the main reason for this is because they couldn't afford it. However, the research shows that almost half (46%) of parents surveyed spend at least the equivalent of an average monthly life insurance premium (£15-£20) on some entertainment activities for their kids over just one weekend.
One in five parents surveyed (20%) also admitted that they don't really understand how life insurance works.
Psychologist Honey Langcaster-James says, "There is a certain amount of reluctance on the part of many families to discuss what will happen if they or their partner dies. This issue throws up big, challenging questions about life and death and many would prefer to just stick their head in the sand. Families are using the perceived cost to justify why they do not have the necessary cover in place. However the real issue here is not one of cost as the findings above clearly demonstrate."
Jon Daniels, Head of Protection at Tesco Bank comments, "At Tesco Bank, we understand the financial and emotional pressures that our customers face when considering how best to protect their families for the future, particularly in the current economic climate.
"Tesco Bank Life Insurance is a straightforward policy which, with average premiums of £15-20 per month, provides affordable peace of mind for parents."
Tesco Bank has worked with Aviva to offer free cover for all new parents: £10,000 per parent for children under the age of one, up until their first birthday. For more information on this and other life insurance offers, go to tescobank.com.