Income Protection Insurance: Supporting Single Parents
An article on income protection insurance and supporting single parents.
In Britain today, single parent families make up 26% of all households with dependent children. That’s two million single parents working hard to balance their own needs as well as those of their child, all whilst holding down a job.
However, having to fill the roles of two carers can be difficult, and being the sole provider for the household puts them in a vulnerable position.
Half the help
Contrary to popular belief, less than 2% of single parents are teenagers – the median age of single parents is in fact 38 years old (Protection Review). People of this age are likely to have a number of financial obligations, and as single parents, they have no partner’s income to fall back on if they suffer an illness or injury which puts them out of work. If this ends up being for an extended period of time, it would leave them with real difficulty in coping with all of their financial responsibilities, not least of all raising children.
This is where the benefit of income protection insurance is most obvious. If you’re unable to work, this cover provides a monthly income that’s designed to compensate for the wage you’d receive in otherwise good health.
Whilst this may all seem rather over-cautious, the reality is that around 300,000 people a year fall out of work (GOV.UK) and into the welfare system because of health-related issues. If you were unfortunate enough to be one of these people, it would have a dramatic effect on your finances and subsequently you and your family’s lifestyle. Many changes in habit can be bearable, and ditching takeaways and expensive evenings out would only really be better for your finances. However, when it comes to the bare basics of making ends meet for your family, there are some things you just can’t compromise on.
Saving for the future
We all want to give our children the very best chances in life, which is why preparation for the worst is so important. Income protection insurance helps to make sure lifestyle changes are optional rather than obligatory. It also ensures that you wouldn’t have to dip into those all-important savings to foot your everyday bills, so saving for your children’s future can stay on-track, even if you’re off-course.
Minding the money
For many, being a single parent means having to get by on limited means, making them only more savvy and mindful of their money. Therefore a monthly insurance premium towards what is really only a possibility, and an unhappy one at that, may seem like an unnecessary expense. However, when you consider the far greater effect of having no income whatsoever then it should bring the value of income protection into clearer focus. You can’t put a price on peace of mind, but just £13.68 a month would guarantee a monthly income of £1,000 for someone on £24,000 a year.
So for single parents looking to cover all bases, income protection insurance provides an easy way to safeguard your finances and at the very least, save some of the stress involved in raising a family.
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- Income Protection Insurance: Supporting Single Parents - April 23, 2015