Parents across the UK are becoming increasingly concerned about the wellbeing of their children, according to new insights from investment, protection and retirement specialist, LV=.
Key findings from the third LV= Reaching Resilience report reveal just over two thirds of parents (67%) are worried about the prospect of their child being diagnosed with a serious illness. Additionally, the report highlights a rising trend in parents worried about their children’s mental health, with more than two thirds (68%) expressing concern, an increase of 2% compared to 2023.
This worry extends beyond just the physical and mental impact on their children, as more than three in five (62%) working parents are also reportedly anxious about the financial impact on themselves/their family if they were injured or experienced a major illness which meant they could not work. A life-changing event, such as the diagnosis of a critical health problem, could result in the parent or carer unable to work for a period of time which may begin to affect monthly outgoings, such as a mortgage or rental payments.
Almost a third of working parents (31%) said they are not confident they could cope financially if they were diagnosed with a critical illness. Moreover, working parents are significantly more likely to say that if they were to experience major health problems or serious injury, it would have a large impact on their family’s financial security compared to workers who don’t have any children (34% vs. 26% respectively). LV’s Reaching Resilience report shows the average UK worker supports three people with their income, including children, older parents or extended family. As a result, any loss of earnings could have a significant impact on those who depend on them.
The report also highlights key insights into the financial wellbeing of single parent households. Two thirds of single parents worry about the financial impact on their loved ones if they were to become seriously ill or pass away. Additionally, more than two in five (43%) single parents said they do not feel financially resilient, compared to just over a quarter (26%) of households with both parents.
Income protection could be used to help bridge the financial gap and limit the financial impact on family members. However, if they were absent from work for two months or more due to illness or injury, only 8% of UK parents said they would use self-funded insurance to cover outgoings.
Gary Beyer, Protection Proposition Director at LV =, said:
“Our latest findings reveal that many parents are feeling increasingly worried about their children’s physical and mental wellbeing – as well as the impact on their families and finances should they themselves be unable to work.
“With two in three parents citing the prospect of their child being diagnosed with a serious illness as a major concern, protection products such as critical illness cover (CIC) and income protection (IP) can provide parents with peace of mind.
“Income protection with family-focused benefits also offers invaluable reassurance to policyholders and their families. At LV=, we include parent and child cover as a benefit in our Income Protection offering. This type of policy can provide financial relief for families when a child is diagnosed with a specific illness, allowing them to take time off work to care for the child.
“Our protection portfolio offers a significant opportunity for advisers to engage with parents, addressing their concerns and helping them achieve financial security.”
LV= supports advisers by providing relevant insights, tools and resources to help them have impactful protection conversations. These can be viewed on the LV= Reaching Resilience hub.
