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Four million parents without life Insurance

Thu, 28 Jul 2005

It is estimated that as many as four million parents in the UK do not have any form of life insurance which results in their partners and children being exposed to financial risks.



There is mounting evidence to show that parents are continually underestimating the cost of raising a child. The cost of raising a child from birth to university is estimated to be £164,000, this is according to Woolworths. Whereas the Pregnancy and Birth magazine estimated the cost of raising a child to the age of five is over £52,000.



Raising children is a huge financial commitment, yet the result of not having life insurance can be even bigger. Many parents do not realise that life insurance can be bought for as little as £5 per month.



"It's so easy to underestimate how expensive it is to raise a child, and parents need to consider how their families would cope financially should something happen to them," said David Pickett, Sainsbury's Bank life insurance manager.



"Life insurance can provide great peace of mind in the knowledge that your dependents would receive a cash lump sum if you were to die. Once you know what your requirements are, there's nothing to stop you shopping around on the cost to make sure you're not paying too much for your peace of mind."



As the summer holidays are now upon us, Sainsbury’s have revealed that caring for a child over a these holidays can cost more than £700.



According to Sainsbury’s bank, the biggest expense over the summer will be travel, apporoximately £278.30, followed by special days out, costing £11.80 and taking them shopping, costing £87.10.



Parents who are looking to keep costs, for caring for their children, low over the holidays, the Abbey National provides the following tips: · Work out what activities you want to do at the start of the school summer holiday. This way children have something to look forward to and it helps parents to budget effectively. · Mums and dads should try and stagger their time off work, so one parent is at home to look after and entertain the kids. · Try and buy the kids toys to play with outside in the summer such as frisbees, tennis racquets, kites, paddling pools and cricket sets. · Visit museums and galleries as they are often free and try to limit trips to theme parks as they can be costly. Don’t forget about local facilities close to home, including the local park. · Try and prepare packed lunches as eating too much fast food is costly and unhealthy for the whole family. · Encourage children to save their pocket money for the summer holiday. This will help them to understand the expense involved and teach them budgeting skills for special events. · Get together with friends and family who have young children, this could halve the cost but double the fun. · If you are alone with the kids, keep them occupied with mini workshops. Try chocolate making sessions or let the kids design their own summer clothes by buying cheap t-shirts and fabric paint. · Buy icelollies and chocices from the supermarket. This will save money on buying them individually from an ice cream man, or the local shop.
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