Uninsured mums could risk family finances
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.
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.”