Tackling Misconceptions to Improve Family Protection

Oct 17, 2012, 08:17 ET from Tesco Bank

LONDON, October 17, 2012 /PRNewswire/ --

New research commissioned by Tesco Bank Life Insurance* reveals that over a third of British families (37%) have never discussed with their partner or another family member what will happen to their dependent children if either of them dies.

     (Logo: http://photos.prnewswire.com/prnh/20121017/568123 )

Parents' reluctance to face up to questions about their own mortality is just one part of the 'family protection gap' identified in the research.  Over 40% of all parents with children under the age of 18 do not currently have life insurance, with 60% citing money worries as a key reason for not doing so.

Over a fifth (21%) of the parents surveyed focus on daily finances rather than looking at their longer-term financial planning because they don't realise how affordable it can be - 39% of those who don't have life insurance indicated that they couldn't afford it. However, the research shows that almost half (46%) of parents spend at least the equivalent of an average monthly life insurance premium (£15-£20) on some entertainment activities for their kids over just one weekend**.

One in five parents also admitted that they don't really understand how life insurance works.

Psychologist Honey Langcaster-James says,

"There is a certain amount of reluctance on the part of many families to discuss what will happen if they or their partner dies. This issue throws up big, challenging questions about life and death and many would prefer to just stick their head in the sand. Families are using the perceived cost to justify why they do not have the necessary cover in place. However the real issue here is not one of cost as the findings above clearly demonstrate."

Jon Daniels, Head of Protection at Tesco Bank comments,

 "At Tesco Bank, we understand the financial and emotional pressures that our customers face when considering how best to protect their families for the future, particularly in the current economic climate.

"Tesco Bank Life Insurance is a straightforward policy which, with average premiums of £15-20 per month, provides affordable peace of mind for parents."

Tesco Bank has worked with Aviva to offer free cover for all new parents: £10,000 per parent for children under the age of one, up until their first birthday. For more information on this and other life insurance offers, go to tescobank.com.

Tesco Bank Life Insurance is provided by Aviva Life & Pensions UK Limited.

Tesco Bank New Parent Free Life Cover is provided by Aviva Life & Pensions UK Limited.

Notes to Editors:

*All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2014 adults of which 538 are parents of a child aged 18 or under. Fieldwork was undertaken between 2nd - 4th October2012.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). Base: All GB adults with children under 18 years.

** From question 'In total, how much do you spend on sporting activities, going to the cinema, soft play, theatre trips, swimming, meals out etc. on average per weekend?

About Tesco Bank

Tesco Bank is the UK's largest supermarket bank.

  • Our customers hold 6.5 million accounts and policies with us.
  • We opened for business in 1997 and since 2008 have been wholly owned by Tesco PLC. 
  • We now have over 3000 staff based in Edinburgh, Glasgow and Newcastle.

Our aim is to be the financial services provider of choice for Tesco customers by giving them good service, great value and by rewarding their loyalty for shopping at Tesco.

Tesco Bank offers a popular range of simple personal banking products, principally credit cards, personal loans, savings and general insurance, including car, home, pet and travel.

  • We offer insurance for our customers' homes, cars, pets and for their holidays and always give discounts on insurance premiums for Tesco clubcard holders. 
  • We were voted 'Best Home Insurance Provider' 2012 in the Consumer Moneyfacts Awards, while our Finest Home Insurance has a 5 Star Defaqto rating.
  • 1.5 million Brits have Tesco Car and Home insurance with us.
  • Tesco Pet Insurance is the UK's number one choice for cat and dog

Last year we gave more than £100 million in Clubcard points to Tesco customers.

Tesco Bank products and services are available online at tescobank.com and by telephone from our UK-based service centres which, like our stores, are open 7 days a week.

Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. 173199. Registered Address: Interpoint Building, 22 Haymarket Yards, Edinburgh, EH12 5BH.

For media enquiries please contact:

Jo Sim, Tesco Bank, jo.sim@tescobank.com, +44-(0)131-479-1346.

Sarah Rowley or Jordan Bickerton, Fishburn Hedges, tescobank@fishburn-hedges.co.uk, +44-(0)20-7839-4321.

SOURCE Tesco Bank