Four million parents uninsured
Monday, 25 Jul 2005 16:32
Four million parents do not have life insurance
As many as four million UK parents are leaving their partners and children exposed to financial risks by not carrying life insurance, a new report finds.
This new research comes as increasing evidence mounts that parents consistently under-estimate the cost of caring for a child.
The cost to parents of raising children from birth to university is £164,000 - Woolworths estimated last year, while
Pregnancy and Birth magazine calculated that the cost of raising a child to the age of five is over £52,000.
Yet despite the massive financial commitment, and the cost of life insurance being just five pounds a month from many insurers up to four million parents do not have life insurance, Sainsbury's points out.
"It's so easy to underestimate how expensive it is to raise a child, and parents need to consider how their families would cope financially should something happen to them," said David Pickett, Sainsbury's Bank life insurance manager.
"Life insurance can provide great peace of mind in the knowledge that your dependents would receive a cash lump sum if you were to die. Once you know what your requirements are, there's nothing to stop you shopping around on the cost to make sure you're not paying too much for your peace of mind."
And today Sainsbury's reveals that caring for a child over a single summer holiday can cost more than £700.
The bank's research found the biggest expense over the summer is set to be travel (£278.30), followed by taking them on special days out (£11.80) and taking them shopping (£87.10).
But for parents looking to minimise the cost of caring for children over the holidays, Abbey had the following tips:
Work out a schedule of activity at the beginning of the school summer holiday. This will give children something to look forward to and help parents budget effectively.
Mums and dads could take time off work on different days, so at least one parent is at home to look after and entertain the kids.
Buy the kids toys to play with outside in the summer such as frisbees, tennis racquets, kites, paddling pools and cricket sets.
Visit free museums and galleries and try to limit trips to costly theme parks. This is more educational for children and will not burn such a big hole in your pocket. Also make the most of facilities close to home, including the local park.
Try preparing packed lunches; eating at too many fast food venues is both costly and unhealthy for the whole family.
Encourage children to save their pocket money for the summer holiday. This will help them to understand the expense involved and teach them to budget for special events.
Team up with friends and family members who also have young children - this could halve the cost and double the fun.
If you are left at home with the kids, organise mini-workshops to keep them occupied. Try chocolate-making sessions (messy but fun) or buy some cheap t-shirts and fabric paint and let the kids design their own summer clothes.
Stock up on ice-lollies and choc-ices at the supermarket. You will save loads on buying them individually from the ice cream man, or the local shop.