Research explores potential financial strain on parent finance of offspring not being able to work
Only 27% of parents say they could cope financial if their child fell ill and could not support themselves, a survey of 500 people by Old Mutual Wealth has found.
A further 43% said it would put a strain on their financials, while the rest said they would struggle to cope or fail to cope at all.
Despite this, none of the respondents aged 18 to 34 said they would pay for critical illness cover for their child after they reach 21, however all of these respondents said they would pay for their mobile phone insurance.
Only 37% of those aged 35 to 54 would pay for critical illness cover for their child after age 21 - 35% on average said they would across all ages.
Old Mutual Wealth, head of protection, Paul Roberts said: "The research shows that many parents understand how financially damaging it could be if their adult child fell critically ill but are seemingly unaware or unwilling to mitigate the risks by helping their child with potentially crucial critical illness cover. However, according to the data most parents are already expecting to pay around £100 per month to their adult children, which is more than enough to cover their adult child.
"This represents a great opportunity for advisers to really show their worth by illustrating to their clients quite how important critical illness cover can be. Similarly, this can be an excellent chance to engage the next generation in the financial advice process and get them set up with their own policy.
"While many parents can't bear to think about their child falling ill, it's an adviser's job to broach this sensitive and difficult subject as ultimately it could help avoid a potentially disastrous financial situation for their client at the worst possible time."
COVER receives top plaudit from industry body
‘Overall the industry has improved’
As part of serious illness cover
£570 a month benefit