A survey conducted by LV= shows it now costs parents more money to raise a child than buy the family home. And despite child costs rising to a record £231,843 from birth to age 21[i].
The average cost of raising a child now takes up more than a third (38%) of annual household net income.
There are a number of Protection products and options available to help safeguard future child raising costs.
Income Protection will protect families against losing an income due to long-term ill health.
Family Income Protection can pay out in monthly amounts rather than just a lump sum for the remaining term of the policy if the insured parent dies (or is diagnosed with a terminal illness). And if you’re recommending life insurance, you could put the cover in trust, to benefit any children once they reach a specific age (typically 18). This money could be used to pay higher education costs – current annual living expenses for university students already exceeds £12,000 a year (outside of London).
To discuss insurance policies to protect your family financially from your long-term ill health or your death, please contact us and will be happy to discuss your requirements further. We are your local Mortgage & Insurance Broker based in Cambridge.