But expectant mums and dads spend fortune on prams and clothes
Four out of five new parents are risking their children's financial futures by “skimping” on life cover, according to research published today.
A survey of 1,500 recent parents carried out for Aviva suggests that while two out of five (40%) start a savings account for a new arrival, fewer than one in five (18%) take out life insurance.
The study reveals that parents are going without life cover even though they have considered what would happen should they die, with a quarter of respondents to the survey stating they had chosen a guardian for their child if they were to pass away.
Aviva said that expectant parents spend an average of £1,370 on things such as pushchairs, baby clothes, cots, bedding, car seats and nappies. However, two-thirds (60%) of families have no form of protection in place and the average family only has £928 in savings.
Research published recently by Ageas Protect suggested that less than one in ten (9%) people have a critical illness policy in place – equivalent to 4.5 million adults – while 12% have taken out a pet insurance policy, equating to 5.9 million adults.
Louise Colley, head of protection marketing and sales for Aviva, said that it is understandable that expectant parents spend so much on their unborn baby but within the “checklist” of essential items, she would urge them to consider putting a small amount aside each month to protect their family's financial future.