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Parents without life insurance for mortgages at risk
Mon, 08 Aug 2005
British parents fail to review their personal finances, and many will find themselves in a pickle if their income situation changes.

According to new research from Scottish Widows , 55 per cent of British families do not review their personal finances after a major life event like the birth of a new child, taking a new job or moving house .

Some 14 per cent of new parents review their credit cards following the birth of a new baby, compared to only ten per cent that review their life insurance .

Almost nine million British parents risk the financial future of their families because they go without any life insurance. If a parent becomes unable to work, the family will become reliant on state benefits, savings or handouts.

However, only 38 per cent of the surveyed parents have adequate savings to help them if this happens. Also worrying is that over two million parents with mortgages have no life insurance for mortgages, putting their homes at risk.

Even though the current emphasis is on investment of child trust fund vouchers, new parents should undergo a full review of their personal finances, commented Nick Kirwan, director of protection marketing at Scottish Widows. "It is worrying that parents are more likely to review their credit cards than their financial protection, but what is more concerning is the wider issue that a third of the nation’s parents have left themselves completely unprotected."

According to Mr Kirwan there is a very real and pragmatic need for people to review their personal finance situation. "The cost of bringing up a child is expensive, however the costs that dependents would face during a time of need would be far greater."

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