80% Of Parents Putting Children’s Futures At Risk – AA Life Insurance
Almost 80% of parents could be putting their family’s future in jeopardy by not having sufficient life cover in place, according to AA Life Insurance.
Research of the Irish life insurance market carried out in 2014, estimated that as many as half a million families with dependent children in Ireland do not have life insurance. The research highlighted that just 22% of parents have purchased life cover in addition to their mortgage protection, which The AA warns could put your family’s financial security at risk. Any claim on a mortgage protection policy is payable directly to the bank, so the family of the claimant would not receive any financial support.
“We take out life insurance so that if the worst happens our family don’t have to worry about future expenses, such as education costs. From what we can see, a lot of parents don’t know that their current level of cover, won’t take care of this. While mortgage protection secures the roof over your family’s head, it certainly wouldn’t replace an income.”
According to a recent survey undertaken by AA Life Insurance, almost 2 in 5 policy holders identified their children as the main reason for taking out cover.
29.15% of those with a policy said they purchased cover to assist their family in replacing their income in the event of their premature death. A further 7% purchased cover to help provide for their children’s future education costs.
“Life events, such as getting married, buying a house or starting a family, have often prompted people to take out life insurance or mortgage protection. While it’s important to get mortgage protection in place first, as soon as you start having children you need to plan for their future. Purchasing life cover is an easy and affordable way to do this” Arwen added.