It has been revealed that families could be putting themselves at considerable financial risk, as a new report finds that modern family are units much less likely to protect their dependents when it comes to preparing for the worst.
New analysis of Government data by Sainsbury’s Life Insurance(1) reveals that in the past decade there has been a significant increase in households made up of unmarried, cohabiting couples, with a 36% rise in unmarried couples living together with dependent children, a 40% increase in same sex family units, and a 15% rise in single parent families. But as the modern day family evolves, this new study(2) has shown that they are less likely to have life insurance in place to protect their loved ones financially in the event of a death or serious illness.
While 37% of married couples living with children have life insurance, only 32% of single parent families and 31% of unmarried parents living with children do. The research also suggests that only around 23% of those living in same sex partnerships have life insurance, and only an estimated 39% have life and/or critical illness cover, significantly less than married couples, 50% of whom have life and/or critical illness cover.
Helen Williams, Head of Sainsbury’s Life Insurance said: “Worryingly, our research suggests modern family units are much less likely to protect their dependents with life insurance or critical illness cover than the traditional notion of a family, but whatever the make-up of your family, it’s important to ensure you and your dependants are financially protected.”
(1) Sainsbury’s Bank analysis of People in families by family type and presence of children, United Kingdom, 2001-2011, from the Labour Force Survey, by the Office for National Statistics.
(2) 2,026 GB adults were interviewed by ICM in an online survey between 3rd and 5th February 2012. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk.