We all like to think that we'll be financially prepared should the worst happen, but research from Aegon has revealed that a worrying proportion might not be. In fact, a lot of women could be putting their families' financial future at risk by failing to have the right kind of protection in place, with 57% of those aged 25+ having no form of protection insurance whatsoever.
It's a worrying statistic, and comes despite the fact that 71% of those with children see the financial security of their offspring as one of the top priorities in their life. And, with 72% of mothers now working to support a growing family, being out of work for a year would put a serious hole in the family finances – an average of £23,589, to be exact.
This highlights the need to be financially prepared, not only from a savings point of view (30% of working mums have no savings whatsoever, and just 13% have enough to last more than a year), but also from protection insurance. Although 28% would rely on state support if they were out of work, 55% have no idea how much financial assistance they'd actually get, and in reality it could result in a shortfall of some £21,000 per year.
Life or critical illness cover may not be seen as a top priority for 26% of those surveyed, but given that financial security is, it makes sound financial sense to consider investing in this kind of insurance. It could be a small price to pay should you be unable to work, and would mean you wouldn't need to rely on external support or cut back on living expenses.
Dougy Grant, protection director at Aegon UK, commented on the findings: "Whether it's a reluctance to discuss the unimaginable, a feeling that protection isn't affordable, or simply a lack of awareness about the services on offer, there are plenty of reasons why women aren't insuring themselves for the benefit of their family.
"There's a clear disconnect between the peace of mind of protecting our most pressing priorities and our behaviour as a consumer. Being prepared is about more than saving - it's also about protecting what you have and planning for all eventualities."
Ultimately, having a financial Plan B can make all the difference to your peace of mind – and potentially your financial security. It's a discussion that everyone needs to have with their loved ones, no matter how uncomfortable it may be, and it should put the right kind of protection insurance at the top of the agenda.
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