Life Insurance for Parents and Carers
Article published on 28th May 2008
Very often people make the mistake of thinking that only those parents or partners who go out to work need their income protected in case of critical illness or sudden death. But this is not the case. Life insurance isn't relevant only to the person who earns salary in your household.
It can cost up to twenty-four thousand pounds a year to cover the replace the loss of a parent who stays at home to rear children and run the household, and that isn't so far from the UK's average salary and certainly more than many will earn working in the public sector. So think hard when planning who needs life insurance and who does not in your family. There are very, very few cases when an adult family member does not contribute a financial value to the running of the house - unless he or she is a university student, in which case they more often than not count as a net loss to finances over the short to midterm.
While on the subject of adults rely on contributions from other family members to survive, it makes sense for anyone in this circumstance (such as elderly family members who rely on the care of the children or grandchildren) to take out a life insurance on those who do the supporting. Of course this only applies if you can afford to do so and if you can prove to an insurance broker that that person's death would cause demonstrable financial harm to you.
If the person/people who support you and care for you were to die unexpectedly, unless you have savings you could be left in a very difficult situation indeed, as chances are you may be too old or frail to find gainful employment in order to pay your own way.
So first and foremost, make sure you start to save for the future as soon as you are able to do so, Secondly, consider life insurance for your partner - hopefully you will never need it, but sadly if you do need it, you may find you REALLY need it...
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