The Value of a Mum?

Published ¤ 29/09/2009

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What is the true value of a mum?

Value of a Mum
Legal & General have been conducting research on the value of a parent for 30 years, using the Office of National Statistics Annual Survey of Hours and Earnings. In 2009 they concluded that the "Value of a Mum" is now £32,812. This figure is higher than the National Average Earnings of £24,538. This is based on a mother spending 74 hours per week caring for her family.
Value of a Mum - Breakdown of Tasks
Some more scary figures:
  • The average cost of raising a child is now £132 per week, or £123,500 over 18 years
  • 63% of parents would rely on their parents for support if their partner died
  • Over half of parents would rely on "reducing spending" if they were unable to work through illness or injury
  • Less than half of all parents have any idea what benefits would be available to their family if they died
  • 70% of parents don't have a will
  • Less than a third of parents have protection in case they cannot work, because of a critical or long term illness, an accident, or redundancy
  • Less than half of parents review their protection following a life stage event - less than 5% review their cover regularly
The figures are getting worse. Not only are parents more in need now than in the past, but the percentage of parents with protection is falling! In 2005 65% of parents had life cover, whereas in 2009 the figure is only 57%. The percentage of parents with critical illness cover has also dropped from 30% to 28% over the same period.
So, what can you do?
  1. Regularly review the cover you have in place
  2. Be realistic about the value of being a parent
  3. Your adviser should contact you regularly, if they don't, get rid of them, and come and speak to me
  4. Make a will
  5. Use trusts to make your plans more tax efficient (they are usually FREE)
If you, or anyone you know has recently started a family, or had a recent addition, or if you would like to review your protection requirements, we would love to hear from you. Please call us on the number above, or click here to send us a message.

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