11th March 2016
A third of parents would be left reliant on benefits it they became ill or involved in an accident and couldn’t work.
Research by insurer LV= showed half of parents are confused by the number of state benefits available but many would need to use them if they became ill and were unable to work.
A third of parent said they would need to rely on state benefits totally if the main breadwinner could not work due to illness or injury. However, three in 10 people said they would not know how to claim employment and support allowance.
Six in 10 parents are struggling with their finances and LV= has called on the government to make it easier for parents to understand what support is available.
It also wants greater clarity on how income protection insurance can complement state benefits under the new universal credit system to ensure that people who choose to protect their income in the event of illness or injury aren’t disadvantaged.
Myles Rix, managing director of protection at LV=, said: ‘With the cost of raising children so high, it’s crucial parents understand the importance of having a financial safety net to help them if they’re unable to work. There’s no guarantee that someone will be eligible for state help if they fall ill, so advisers play a vital role in educating parents about the benefits of income protection.
‘With the introduction of universal credit adding to the confusion around benefits, we want government to clarify the rules and ensure no one is penalised for choosing to protect their income themselves.’