According to a report published in March this year, the cost of raising a child until it’s 21 now stands at £210, 848. This is a 4.5% rise on last year, which even manages to out pace a way-above target inflation rate. What’s even scarier is the fact this £210,000 figure is a massive 50% more than the 2003 rate.
The survey by LV insurance also found parents are worrying about the impact of cuts in Child Benefit and rising university fees. It is childcare and education that are the two most expensive areas of expenditure among parents costing on average £67,430 and £55,660 respectively.
Aside from education and childcare, parents are having to dig ever deeper into their pockets for things like holidays, food and toiletries. The pressure on parents to provide their children with everything they need and want is growing and many parents are having to cut back in other areas just to make sure their children don’t come up short.
So then, what happens to the children if one of the parents is taken out of the equation? Not only is a death emotionally challenging to deal with, trying to deal with the financial burden left by their passing, at the same time, is often a mountain too big to climb.
Whether it’s mum or dad, the breadwinner or the stay at home parent that dies or becomes terminally ill, trying to pay the household bills, the mortgage and all the costs associated with raising a child on just one salary can be impossible. There is one simple, straightforward and cost effective solution: life insurance.
Life insurance isn’t just for the rich and famous with a lot of financial clout. Normal families can benefit from the financial assistance that comes from having a life insurance policy. There are different types to choose from, but essentially they all work in the same way; you pay money into a life insurance policy either monthly or annually. Then as long as you keep up payments and/or you die or become critically ill within the policy term, your family will receive a payout relative to the amount you contributed, but obviously, as it’s an insurance policy, the payout will be greater (in most cases) than the amount you contributed.