UK families under prepared for the worst case scenario
News statistics show that more families have cover in place for their property and possessions than they do to protect themselves and their families, with financial protection cover.
Illness and death are inescapable facts of life. There are more than 293,000 new cases of cancer diagnosed each year in the UK, and more than a third of us will develop some form of cancer during our lifetimes.
Despite this, just under half (47%) of parents do not have life insurance cover, with mums having less cover than dads. Furthermore, over three quarters (76%) of parents do not have any Critical Illness Cover in place, with less than a quarter (22%) of mums holding such cover. In comparison, three quarters of parents have car and/or home contents insurance cover, over three fifths (62%) have buildings insurance and almost one in five (18%) have mobile phone insurance.
The research also shows that parents are not adequately covered against unemployment, with only 17% holding Income Protection Cover. Overall, almost two in five respondents (38%) claimed not to have any personal financial protection at all.
Guy Simmonds, Nationwide senior manager for protection and investments, said: "In everyday lives, objects and possessions such as mobile phones and cars are far from indispensable, but to your family you're irreplaceable. How would they cope if you were no longer here, or unable to support them financially because of an illness, disability or unemployment? With this in mind, these figures show how unprepared some parents are to take care of their families if the unthinkable happens.
"You can't be replaced, but you can make plans today to replace the income that you would otherwise have provided for your family. Our loved ones are the most precious things to us - that's why it's important to protect them and the lifestyle you have helped to build for them."
When deciding the level and sort of cover that's appropriate to them, people should think about their circumstances and how badly their family would be affected without their current earnings. Arranging cover can be easy and can help to provide peace of mind for the policy holder that their family is protected.
Life insurance pays out a lump sum if the policy holder were to die, while critical illness cover pays out if they are diagnosed with a terminal or critical illness.
Income protection can provide a safety net if the policy holder is unable to work due to illness or accidental injury. It can pay out a tax free benefit until they are well enough to return to work, or until the chosen retirement age.