According to the third LV= Reaching Resilience report, more than two thirds (68%) of parents expressed concern about the mental health of their children, an increase of 2% compared to 2023.
Concern about illness and the impact of it is not limited to children: more than three in five (62%) working parents also reported feeling anxious about the financial impact on themselves or their family if they were injured or experienced a major illness which meant they could not work, and 31% of working parents were 'not confident' if they could cope financially if they were diagnosed with a critical illness.
Having children increased survey takers' likeliness to be concerned about finances - working parents were 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). Single parents were most likely to be concerned, with 43% saying they do not feel financially resilient, compared to just over a quarter (26%) of households with both parents.
Despite the availability of protection products available, only 8% of UK parents said they would use self-funded insurance to cover outgoings if they were absent from work for two months or more due to illness or injury.
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.”
