A new study has shown that the cost of childcare makes it practically impossible for a 2-child family to survive the loss of one income, without life and critical illness insurance.
The Aviva COTS (Cost of the Sibling) study found that with the cost of childcare for 2 children now almost £16,000 a year*, many spouses would be working ‘just to pay the childminder’ in the event of the death or loss of income of their partner. The only option would be to survive on state benefits, if no life insurance cover and critical illness insurance were in place.
For many 2-child families, the cost of childcare has already made it unattractive for both partners to remain at work, after the arrival of the second child. In Aviva’s study of 1,000 parents with 2 children, 4 in 10 families felt that continuing to work was an unworkable option and one which will be even less so, with the loss of Health in Pregnancy grants and other benefits in the June 2010 budget.
*Full-time nursery place for child under 2 typically £152 per week or £7,900 per year
