Almost one-third (29%) of parents with young children do not feel at all confident in their ability to cope financially if diagnosed with a critical illness, according to research by life and pensions mutual insurer LV=.
Its second annual Reaching resilience report, which surveyed 4,000 UK adults, also found that the average working adult supports three people with their income, including themselves, with 10% supporting five or more dependents.
One-third of respondents said that their family’s financial security would be largely impacted if they were injured or experienced a major health problem, yet just one in eight have income protection cover that they pay for themselves.
A fifth said they could manage less than one month without their income and 15% would rely on loans or credit cards if they were unable to work for two months or more due to illness or injury. More than one-third (37%) worry about their own and their families’ financial security if they were to experience a major health problem or injury.
Two in three parents said they are worried about the prospect of their child being seriously ill, 5% of parents with young children have had an injury that led to two months or more off work in the last three years, and 7% have had to take unpaid time out of work for an ill child in the same time period.
Mike Farrell, protection sales and marketing director at LV=, said: “Our latest research found that many parents are feeling unprepared if they had to take time off work for health reasons. It is no surprise that parents are concerned about the wellbeing and happiness of their loved ones, yet some people will be unprepared for financial difficulty if they do not have the right financial safety net in place. Conditions such as cancer, heart attack or a stroke can have a devastating financial and emotional impact on families.”