LV Insurance: Parents cutting costs

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LV Insurance: Parents cutting costs

Fri 23rd Jan 2009

Eight out of ten parents in the UK are being forced to cut back on family expenditure because of the credit crunch, it has emerged.

According to LV Insurance, British adults are increasingly looking to reduce their outgoings to help cope with the costs of childcare and education.

Research by the firm showed that 37 per cent of parents have also been forced to cut down on the amount of money they are saving.

Meanwhile, nearly a quarter have resorted to cancelling their life insurance and income protection to help offset the effects of the financial crisis.

However, LV group chief executive Mike Rogers said making short-term cuts could prove to be a false economy for some parents, with such cover now more important than ever.

"The financial security of a family could be hugely affected if a parent was unable to work long-term because of an accident, illness, or job loss," he warned.

This comes after uSwitch revealed that a number of people are also looking to cut costs by cancelling their home insurance, despite a rise in the number of domestic burglaries.

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