Abacus Daily Debt News

Parents ‘could be leaving their children in debt’

Childhood poverty could be a reality for those whose parents have not adequately prepared financial cover in the event of their death, suggests new research.

Bright Grey, protection specialists, found that 15 per cent of those surveyed admitted they had not thought about how their children would cope if they were to die.

Proposition director of the firm Roger Edwards said: "People don’t want to think about the financial consequences of themselves or their partner not being around, but it is one of the most important areas of your finances to get right."

Many individuals may consider taking out cover too time-consuming or expensive, however, life insurance costs have reduced in the last two years, he added.

According to the survey, 64 per cent of parents believed they had not made sufficient arrangements for their children if they were to die or become seriously ill.

The Post Office recently revealed that more than six million people fear the financial implications incurred by a relative’s death.

By Francis Finch