Life Insurance: Mother's Day think of protection
Mother's Day life insurance tips
Monday, 25 Feb 2008 04:00
The UK's mums are being urged to enjoy being pampered this Mother's Day and use the time to make sure their families are protected.
A study by Legal & General reveals the UK's mothers do an average of £24,000 worth of work in each home, while the cost of raising a child to the age of 18 is now £122,859.
All mums are now being urged to consider life insurance this Mothering Sunday, March 2nd.
Matt Morris, policy adviser at independent life insurance specialist LifeSearch, said: "It is not just working women who should be thinking about protecting their finances.
"The value mothers provide to the home through daily activities is massively underestimated. Unfortunately very few consumers actually realise the choices that are available to them and many either buy the wrong product or get a bad deal."
LifeSearch has now raised a few issues for mothers to mull over as they relax on the sofa with chocolate and tea this weekend.
Firstly mothers should look at life insurance polices that offer a steady income over a lump sum.
There are two main types of life insurance policies - those that offer family income benefit (FIB) and those with income protection (IP).
FIB pays out a regular income until the end of a policy and could potential pay-out double the amount of a lump sum. Payments could also be linked to the cost of school fees or home help.
IP policies pay out if you are unable to work through illness, injury or in some cases losing a job.
Mothers should also not think the state will provide enough support in the event of the worst happening.
A 30-year-old woman earning £35,000 per month would be entitled to weekly incapacity benefit of £61.35 for the first 28 weeks, or £245.40 per month.
Another area to look at for couples is whether to opt for two single life insurance policies, or a joint policy.
While two single polices may cost as much as ten per cent more, they pay out twice. Also if couple split, perhaps not the happiest thought for Mother's Day, the policies can go with them.