Life Insurance -
Mothers given three point plan for life insurance - 22/02/2008
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LifeSearch have drawn up a three-point plan which it says every mother should keep in mind to make sure the family finances stay healthy.
The findings from Legal & General's last 'Value of a Mum' research found that the cost of replacing the work that mums do in the home is £24,456 per year, roughly the average UK annual salary.
With this in mind LifeSearch said there are three simple steps a cautious mother can take to ensure her family are protected in the event that something were to happen to her that threatens the family's financial security.
It says firstly mothers should consider a policy that pays an income, not a lump sum. Secondly, don't rely on state benefits (a 30-year-old woman earning £35,000 per month would only be entitled to Incapacity Benefit of £61.35 for the first 28 weeks).
And finally take out single life cover, not joint life cover. LifeSearch said although two single life policies cost a little bit more, they pay out twice, whereas a joint policy will only ever pay out once. Also if the couple split up, they can each take their own policy with them.
Matt Morris, LifeSearch policy adviser, said: "It is not just working women who should be thinking about protecting their finances. The value that mothers provide to the home through daily activities is massively underestimated. Unfortunately very few consumers actually realise the choices that are available to them and many either buy the wrong product or get a bad deal."
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