Just one in five new parents have life cover
First-time UK parents spend more than £469 million each year preparing for the arrival of their first baby, but new research has found that just one in five have life cover.
An Aviva study * of 2,000 recent parents found parents across the UK spent over £469 million in total on baby essentials such as prams, baby clothes, cots, car seats. Meanwhile one in five new parents (20%) moved to a bigger house, with the majority paying around £45,291 in the process.
However, Aviva found a “worrying” proportion of new parents could be risking their children’s financial futures by not taking out life cover.
One in five said they had taken out life insurance or reviewed their protection needs at this time.
New parents were twice as likely to start a savings account for their new arrival, with two out of five (59%) saying they’d taken this step.
Paul Brencher, Aviva UK Health and Protection Director said: “Considering that buying your first house and starting a family are traditionally the most common life events that prompt the arrangement of life insurance. It is very concerning to see that nearly three-quarters of first-time parents are not protecting their families’ future financial wellbeing. Additionally, a large proportion of UK adults have little or no savings** that they could rely on to help weather the financial fall-out of an unexpected loss of income due to ill-health from a working parent.
*Aviva research Jan 2020
** The Financial Conduct Authority’s report The financial lives of consumers across the UK updated in January 2020 found that one in eight (13%) of UK adults have no cash savings. With 32% having savings of less than £1,999.
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