Many parents have bought life policies in the past assuming their children would be independent at 18. New research shows parents are funding their children for much longer, so new protection options are needed.
Gone are the days when your little ones flew the nest at age 18, leaving you to breathe a sigh of relief that your current account might at some point recover. Becase of the difficult economic environment, parents today cannot expect to get their financial freedom back until their children are much older.
Day-to-day living is more expensive, jobs harder to come by, and house prices are high with loans often difficult to obtain without paying a large deposit or a very high rate. According to The Children's Mutual, 93% of parents are still providing towards their childrens' finances until they are 30, and 16% of parents are still supporting their children beyond the age of 30.
This raises the question, do parents have sufficient protection in place? Even if they have sensibly planned ahead to ensure their offspring are financially supported, will that support continue if something should happen to one or other of the parents?
With children being financially dependent for longer, it makes sense to review existing policies to see whether the sums assured allow for the extra money that older children now need from their parents.
It seems that providing a secure financial future for their children is becoming an ever-expanding financial commitment for parents. This makes it vital to keep protection cover up to date with changes in the social and financial landscape.
