New research has revealed that first time parents will spend a fortune on welcoming the new arrival but neglect to protect their financial future.
A survey by Aviva found the average new parent spends £1,645 on equipment like prams, cots and car seats – a total of £469 million a year across the UK.
But less than 1 in 5 takes out a life insurance policy to make sure their growing family would be protected against the loss of a parent and their income.
The survey of 2,000 people also revealed that just 16% have made a will while 66% have installed stairgates and 49% fitted safety catches on kitchen doors and cupboards.
A new car was on the shopping list for 40% of new parents who spent an average of £9,414 on the upgrade while 20% moved house, spending an average £45, 291 on their move up the property ladder.
Aviva UK health and protection director, Paul Brencher, said: “Considering that buying your first house and starting a family are traditionally the most common life events that prompt the arrangement of life insurance, it is very concerning to see that nearly three-quarters of first-time parents are not protecting their families’ future financial wellbeing.
“Additionally, a large proportion of UK adults have little or no savings that they could rely on to help weather the financial fall-out of an unexpected loss of income due to ill-health from a working parent.
“Ensuring that there is appropriate financial protection in place should be on every new parent’s list of essential items when they are starting a family.”
He added that a monthly premium of £15 for a standard life insurance policy covering both parents could provide a tax-free lump sum of £237,123 if one parent died or was diagnosed with a terminal illness.
Not an easy task
Finding the right policy for your personal circumstances is not an easy task, but at FPL our friendly and knowledgeable staff are ready, willing and able to help you in your quest.
We all want what is best for our families and it makes sense to plan for the future. None of us know what it may hold so having the right cover in place to protect your loved ones will give you peace of mind.