Aviva has pledged to provide a year’s free cover to parents with young children in a bid to encourage more families to get vital protection.
The cover is worth £15,000 to parents of children aged under five, and available to both parents for each child registered before their fourth birthday.
The policy lasts for 12 months and pays out £15,000 if a covered parent dies during this time, no payment is needed and Aviva will not request bank account or credit card details.
According to Louise Colley, protection director for Aviva, this is a response to the low levels of protection in the UK.
While parents are starting to save more for their children – with 52 per cent of Aviva clients having opened a savings account in their children’s names – six out of 10 families are still underinsured in the event of the worst-case scenario.
She said: “Having children can be an expensive business, but it is incredible to see how this stacks up over the years. This is why it is so important for parents to consider how they might cover the cost of raising a child if they were to unexpectedly lose an income through illness or bereavement.”
Adviser view
Hamish Gairns, director for Chichester-based Marchwood IFA, said: “There are many avenues to save for children and, with various tax breaks on products such as Isas, there is more incentive for parents to save.
“When we talk with our clients, we always discuss what protection they have in place. As a parent myself, I know how important this can be. So, for example, if the client has a family, we look at how they can protect them in the event of anything happening, or whether school fees planning could be put in place. We believe protection should be the first port of call.”
