More than two-thirds of UK parents are concerned about the prospect of their child being diagnosed with a serious illness, according to new research from LV=.

The findings, published in the third LV= Reaching Resilience report, show that 67% of parents worry about their child’s physical health, while concerns about children’s mental health have also risen, with 68% of parents expressing anxiety—an increase of 2% compared to 2023.

FINANCIAL IMPACT OF ILLNESS ON PARENTS

Beyond concerns for their children’s wellbeing, the research highlights the financial vulnerability of parents should they experience a critical illness or injury themselves. The report finds that 62% of working parents worry about the financial impact if they were unable to work due to illness, particularly in relation to key household expenses such as mortgage or rent payments.

31% of working parents said they would struggle to cope financially if diagnosed with a serious illness. Parents were also significantly more likely to say that a major health issue would impact their family’s financial security, with 34% expressing concern, compared to 26% of workers without children.

The research also found that the average UK worker financially supports three people, including children, elderly parents, or extended family members. This means that any loss of earnings could have widespread consequences for those who depend on them.

SINGLE PARENTS AT GREATER FINANCIAL RISK

The report also highlights the financial challenges faced by single-parent households. Two-thirds of single parents worry about the financial impact on their loved ones if they were to become seriously ill or pass away. Additionally, 43% of single parents do not feel financially resilient, compared to just 26% of households with both parents.

Despite these risks, the report found that very few parents have insurance in place to mitigate financial strain in the event of illness or injury. Only 8% of UK parents said they would rely on self-funded insurance to cover expenses if they were unable to work for two months or more.

NEED FOR INCOME PROTECTION

Gary Beyer, protection proposition director at LV=, said the findings highlight the need for financial protection products to provide security for families.

“Our latest findings reveal that many parents are feeling increasingly worried about their children’s physical and mental wellbeing – as well as the impact on their families and finances should they themselves be unable to work,” he said.

“With two in three parents citing the prospect of their child being diagnosed with a serious illness as a major concern, protection products such as critical illness cover and income protection can provide parents with peace of mind.

“Income protection with family-focused benefits also offers invaluable reassurance to policyholders and their families. At LV=, we include parent and child cover as a benefit in our income protection offering. This type of policy can provide financial relief for families when a child is diagnosed with a specific illness, allowing them to take time off work to care for the child.”