You are here: Home - Insurance - News -

Uninsured mums could risk family finances

Written by: Christina Hoghton
Most women with dependent children do not have life insurance or critical illness cover, putting themselves at financial risk.

A worrying third (33%) of women with dependent children admit they could only pay three months of household bills if they or their partner were unable to work due to an accident, sickness or unemployment.

And 10% reckon they wouldn’t be able to pay any bills at all, according to research from Scottish Widows.

Despite this the majority of women with dependent children do not have life insurance or critical illness cover, potentially putting their household finances and mortgage payments at risk.

One in five (20%) claim they could only pay their mortgage for a maximum of three months.

Left vulnerable

Financial pressures are prompting women to sacrifice protection insurance, with almost half (47%) saying they are simply unable to afford cover.

Just 39% of mums have taken out a life insurance policy, and alarmingly, fewer than one in 10 (9%) have critical illness cover.

Many mothers still don’t consider having insurance a necessity, with 15% saying they don’t rate having critical illness cover as a financial priority and 13% thinking it’s a waste of money. This is despite the fact that more than a third (35%) of women earn the same or more than their spouse.

Sarah Moore, senior protection proposition manager at Scottish Widows, said, “It’s concerning to see such a high proportion of women having to take a gamble with their household’s financial security because of other money pressures, particularly given so many families have little in the way of backup funds.

“If the choice is between protection insurance or putting the heating on, it’s obvious which one a parent would choose. But even a tiny amount of protection is better than none – after all, the household would struggle to run at all without mum (or dad). As an industry we need to find better ways to show the critical role which protection insurance plays in safeguarding the financial welfare of our families.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
lifelong income
A fifth of 50 year olds have not started saving for retirement

One in five people in their 50s have not started saving for retirement, shocking statistics reveal.