The death of a parent leads to greater hardships for families, and especially for younger children, if the parent holds no life or risk insurance, new research has found.
As part of a strategy to help risk advisers provide examples to their clients of the benefits of life insurance, ANZ Wealth, in partnership with Ipsos, has explored the impact death can have on a surviving parent and their children.
Conducted between April and May 2015, the research found 50 per cent of children whose parents had no insurance said their family was “unable to support them” financially whereas they could prior to the death.
This was compared with 36 per cent of children whose family was covered by life insurance.
Due to the financial pressures created by the passing of their parent, one in three children over the age of 14 took on a job to help alleviate financial stress, the research showed.
Thirty-three per cent of families that had no insurance reported a decrease in time spent together, whereas only 24 per cent of those with insurance experienced this, it showed.
The research also revealed that 15 per cent of children had to move schools because of financial pressures placed on the family.
ANZ Wealth found that for families without insurance, 14 per cent rated their current financial situation as “struggling”.
Following the death of a family member, this number jumped to 47 per cent.
In the case of families that experienced the death of a family member but that had insurance, 56 per cent indicated they had “adequate” finances from their life insurance policy.
Overall, 75 per cent of those without insurance agreed that, in hindsight, a policy covering death would have helped them.