· 60% of new parents don’t have life insurance in place to protect their families
· Almost a third (30%) of parents without cover admit that taking out a policy wasn’t a priority
· Almost half (47%) without cover didn’t take out cover because they think it is just too expensive
· Asda Money offers more to new parents with free life cover until baby’s first birthday*
As new research reveals 60% of new parents1 have no protection cover in place, Asda Money launched its free life insurance for new parents offering £10,000 life cover for each parent per baby under the ages of 12 months and up to their first birthday.
While becoming a parent should trigger families to take out life cover, it’s not just new parents that have neglected to do this. Almost half (49%) of all parents do not have life insurance in place to protect their families, with 46% of those without believing it is just too expensive. When parents do take it out, it’s often low on their to-do list, with 32% taking it out more than a year after having their first child. Research also reveals that parents with younger children are less likely to have life insurance. Only 3% of parents with children aged 0-5 years old have a life insurance policy while over a third (34%) of parents with children over 21 are covered.
For new parents, juggling all the demands and worries of having their first baby, taking out life insurance should give them added peace of mind. Almost one in six (18%) who failed to take it out don’t think they will need it and almost a third (30%) said it is not a priority. However, parents with children born before the recession kicked in (aged between 6 – 15 years old) are much more likely to have cover in place with 63% stating they have a policy. Having a protection policy in place of any sort is low on the list for families; just 16% of all parents have income protection in place.
Kirsty Ward, head of Asda Money said “Whilst becoming a parent is an amazing experience, it can be a stressful and emotional time filled with sleepless nights and worry. That’s why we are offering new parents the opportunity to receive up to £20,000 of free life cover per child until the baby’s first birthday, to provide some peace of mind. We know that many families are feeling the pinch and we are hoping we can make a little difference.”
Asda Money free life cover for new parents is distributed through Asda’s distribution partner LifeSearch Limited, and provided by Aviva Life & Pensions UK Limited.
Asda Money’s free life insurance for new parents:
• £10,000 free life cover – for each parent per child. So the family will receive £20,000 in cover if both parents apply.
• Covers families for up to one year – The policy pays out if a parent passes away on or before their baby’s first birthday.
• Automatic acceptance – unless a customer has been diagnosed with HIV, or received treatment for cancer within the past 12 months.
• Absolutely free –Customers won’t be asked for their bank account or credit card details. And if they have more than one baby under one year old, they can apply separately in respect of each child.
• Free Advice: Lifesearch advisers are on hand to discuss each family’s full protection needs when setting up free cover. Although the amount of free cover available won’t be sufficient to meet the protection needs of the majority of growing families, it’s a start. There is no requirement to take out an additional policy, but where a need is identified we hope the additional cover is taken up to ensure the family is properly protected.
To find out more, visit http://www.ASDA.com/money>
Posted by Tracy Thomas