Plan now or pay later, parents are warned
Start planning for children now
Monday, 28 Nov 2005 16:49
Future parents are being urged to plan now or pay later when it comes to looking after any children they might have later on.
AXA has highlighted statistics that show around 6,489 children a year are born to fathers aged over 50, with the most children born to fathers aged between 30 and 34.
But this can prove to be a financial problem.
A typical package of life cover, critical illness cover and income protection cover for a 49-year-old man costs three times as much for a 29-year-old man. And someone thinking of taking out insurance to protect their family at 59 can expect to pay four times as much as a 29-year old.
AXA reveals that a 29-year-old would pay £95 a month for £2,000 a month of income protection and critical illness and life cover of £100,000.
But at 49 the same cover levels would be £280 a month, while 59-year-olds would pay £350 month.
"We strongly encourage people to think ahead and review their protection requirements with their financial adviser," said AXA’s Paul Bennett.
"Younger people who are home owners should consider their protection needs in any case. They’ll count their blessings if they join the trend to later fatherhood."
And insurance is not the only concern.
Financial advisers Edinburgh School Fees point out that with the cost of raising a child rapidly accelerating (
full story) potential parents should start planning for their future as early as possible.
"Planning earlier is becoming more of a necessity for all families as the cost of living rises," said Michael Hughes, who established Edinburgh School Fees.
"An individual school fee plan put in place at the earliest stage possible in a child’s life, is one way of easing the financial burden placed on parents as well as saving them money along the way."