Over 3 million1 families put children at financial risk by skipping family protection
Britain’s parents were today given a helping hand by Aviva – with a new offer providing £10,000 worth of free life cover for new parents in the UK2.
Research released by Aviva’s UK Life business suggests that over half of parents in the UK would leave their dependent children with little or no financial protection in the event of a parent’s death. Almost 40%3 of parents polled have not bought life insurance cover, with a further 17% of those polled only having sufficient life insurance cover to repay their mortgage.
The Parent Study reveals an alarming gap in both cover and awareness amongst parents:
- Over half of families (56%) with dependent age children, do not have cover that would provide a lump sum for their families if the worst were to happen.
- Almost 40% parents polled have not bought life insurance cover and a further 17% only have enough to cover their mortgage.
- 175,0004 families have no idea if they are covered or not.
Having a child is a key event in anyone’s life, but arranging life insurance does not always top the to-do list. Now, under the Aviva initiative, each parent who applies before their baby is six months old, will receive £10,000 worth of cover at no cost to them, to run up to and including the child’s first birthday.
Louise Colley, head of protection at UK Life, Aviva, says: “For many, life insurance is a box they tick when they buy their first home and then forget about – our research shows parents are currently twice as likely to buy insurance when they get their first mortgage than when they have their first child.
“Anyone, like me, who is a parent knows only too well that the first 12 months can be really tough, as well as incredibly rewarding. We’re going the extra mile with this free cover because we believe it’s absolutely essential that new parents consider how they best protect their new family.”
Although the offer is a fraction of the cover a family needs, the offer recognises that new parents do not always consider, or have the time to purchase, family protection when they have a young baby. This offer seeks to remind parents of the importance of financial protection for their family, so they can do something about it as soon as they have the time. Whilst the offer is aimed at new parents, Aviva will be using this initiative to raise awareness with all parents about the need to plan financial protection for their families.
The Parent Study also revealed:
- One fifth (18%) of parents polled admitted they had simply not gotten round to buying life insurance.
- Over two million families5 worry about their level of life insurance protection
- Nearly one in ten (8%) have not taken out life insurance because they find it too complicated and confusing
- 65% of cash strapped new parents6 believe it’s a product outside their financial means
Throughout July and August, Aviva are running a campaign across TV, press and online to promote it’s free cover offer and highlight the need for family protection.
David Barral, marketing director at UK Life, Aviva adds: “I’m delighted that we’re able to take away one concern new parents may have by offering the reassurance of free life cover. It’s also a very clear demonstration of how our new Aviva brand is delivering on it promise of building financial services around the individual needs of our customers. There is no better place to demonstrate this than by giving a little peace of mind to new parents at this life-changing moment.”
New parents can register for the offer from Sunday 12 July either online by visiting www.aviva.co.uk, by phone on 0800 046 6446, or by speaking to their financial adviser.
1 56% of parents either have not bought cover, or only have enough to cover their mortgage. 3,269,457 410 represents 56% of the 5,838,317 families in the UK with dependant children under the age of 16 years (ONS statistics).
2 Exclusions apply. Please see attached terms and conditions.
3 38% of parents polled had not purchased life insurance cover.
4 175,000 represents 3% of 5,838,317 families in the UK with dependant children under the age of 16 years (ONS statistics).
5 35% of parents with children under 16 worry whether they have enough life cover. 2,043,410 represents 35% of the 5,838,317 families in the UK with dependant children under the age of 16 years (ONS statistics).
6 New parents defined as those with at least one child 12 months or under.
The Aviva new parents initiative launches on Sunday 12 July and applications will be accepted from that date. There is no current end date to this promotional offer and we reserve the right to alter or withdraw the offer at any time.
