Personal insurance, both in terms of life insurance cover and critical illness cover, are particularly important for the growing number of single income households in the UK, as revealed in a new study published today.
The number of stay-at-home-dads has increased tenfold in ten years, now standing at 600,000 compared to just 60,000 in 2000, according to new data from Aviva*, and women are increasingly taking on the earning role among the 31% of UK households that now rely on a single breadwinner.
Aviva also revealed that, in 85% of houses with children, at least one parent has significantly reduced their hours, or given up work completely, to take on parenting duties and cut down childcare costs.
Parents who make the choice to have a single income household are particularly vulnerable to loss of income through critical illness or the unexpected death of a breadwinner, Aviva says. “We’d advise anyone with dependent children to consider the importance of financial protection for their family – particularly if they are relying on one income,” said Louise Colley, head of protection marketing at Aviva.
Life insurance cover can protect your family’s standards of living should the worst happen, and an independent financial adviser can work out how much life cover is needed, not only to replace lost income, but to clear outstanding mortgage repayments and other debts as well.
However, 1 in 4 men or 1 in 5 women are likely to suffer a critical illness, which they will survive, before retirement age. The loss of income during an extended period of illness can be offset by critical illness insurance, which pays a lump sum when the holder is afflicted by one of the critical illnesses covered by the policy.
*Source: Survey of 1,084 parents for Aviva by Tickbox.net, March 2010
You can calculate how much personal insurance cover you need with our life insurance planner or critical illness planner
