Support your family

December 13th, 2019
Support

Recent evidence has shown the financial difficulties faced by parents with regards to the upbringing of their children. Of those who carried out a Santander survey, 52% claimed the expenses of raising their offspring have risen significantly in the recent past. In addition, 41% stated it is borderline impossible to have the financial resources to raise a child in the modern day. These depressing statistics are further compounded by 5% claiming they would not have had a child if they knew the costs associated.

The research has shown that an average family expends £537 per month raising their offspring, with the most expensive spending cited as food and child care. These statistics emphasise how vital it is to ensure financial securities are in place in case a parent becomes critically ill or the less likely, death. A significant proportion of parents, 26%, stated they had no kind of critical illness or life insurance to guard their children against the worst case scenarios.

It can be understandable, that talking about critical illnesses or death is not a hot topic between parents, but it is hugely important that a financial contingency is in place to ensure their children are not left in a desperate situation. Parents must feel comforted that their nearest and dearest will be well looked after should anything happen to either or both of them.

Increasing cost of dying

Increasing financial implications of funerals have emphasised how vital it is to guard your nearest and dearest from the financial expenditures of passing away. Research has brought to light that a bog standard run of the mill funeral costs 6.2% more when comparing 2011, where it cost £3,091 to £3,284 in 2012, highlighting an outrageous 71% rise since 2004 and how essential it is to plan ahead.

Despite bills for funeral director’ and cremation costs rising, the complete expense of dying has reduced by 1.9%, which can be largely attributed to smaller legal bills for estate administration. Most worrying issue is that the research showed 27% of those surveyed have no strategy to pay for their funeral. This is especially vital because the Government’s Social Fund Funeral Payment Scheme, a system which subsidises funeral costs for the most fragile, is finding it hard to handle the significant demand. Alternatives which have proved to be popular to cover funeral expenses include a pre-paid funeral plan or an over 50s life insurance plan.

Millions of women failing to protect futures

Twenty-first century women now have greater financial independence and discretion, evidenced by most women carrying out the financial choices in their homes. In spite of this fact, millions of women working full time are not safeguarding their futures, with an outrageous 84% of women failing to secure a critical illness policy.

More than 50% claim they do not have the funds for protection cover, with more than 40% of women questioned saying their views towards protection cover will change if they have children. Women know their worth hence it is especially alarming the huge numbers of women who have yet to consolidate their financial futures. Shrewd women would have already organised their critical illness and life cover and pensions. Of those who still need to sort their cover out, they will be searching for only the best price.

Towards the end of 2012 gender neutral pricing came into effect as a result of the EU Gender Directive, where, by law, women and men will be treated equally with respect to pension protection and insurance. This has meant some products for women like life policies have become dearer, so the earlier they are bought, the better, although covers like critical illness policies have become marginally cheaper for women since last year. Taking care of finances means constitutes protecting the future as much as the present, and since planning is one of women’s ‘natural skills’ this should prove a not too difficult issue.

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