According to research from LV,* the cost of raising a child has reached an all-time high of over £230,000, which is now more expensive than the UK's average house price.
The average annual cost of raising a child takes up more than a third of the average household’s total income, with childcare and education costs playing a significant part.
Education can cost parents around £75,000 over 21 years, without accounting for the cost of private school fees.
With the cost of having children increasing, it is not a surprise that this is putting financial pressure on parents. According to LV’s survey, 6 in 10 parents admitted they’re struggling to manage their outgoings, and 50% said that they do not have a plan in place if they lost the income from the main breadwinner due to ill health, death or redundancy.
Research like this highlights the overwhelming importance of taking out a Relevant life Policy and ensuring that the financial security of your family is accounted for in case the worst should happen.
This tax-efficient form of life cover will help cushion the blow from rising child costs, whilst helping pay mortgage payments if your family suddenly lost vital income.
So, if you, like half of the participants surveyed, still do not have a plan in place for if you lost income from your main breadwinner, watch our video here to find out how Relevant Life Expert can help.
* Taken from https://www.lv.com/about-us/press/article/cost-of-a-child-2016 and accurate as of 15.02.2016