Why every parent needs a plan for the future

As a financial adviser who deals with life insurance on a daily basis, I’ve seen how insurance can help families in hundreds of different ways. But without doubt, one of the most fundamental roles of life insurance is to protect a family financially if they lose a parent.

According to a 2010 study commissioned by OnePath, the loss of a parent can have a devastating affect on a family’s lifestyle – with almost a third (32%) of families having to move house within two years as a result of financial pressure.

The study also found that financial pressure can add to the already significant impact on the lives and mental wellbeing of children.

For example, of all children surveyed, almost half (48%) said their academic performance worsened after their parent died. And just over half (51%) were diagnosed with clinical depression.

Looking specifically at those children who were forced to change schools due to financial pressure, over three quarters (78%) experienced a decline in academic performance, and 69% were diagnosed with clinical depression.

This shows just how hard it can be for children to cope with the loss of a parent – especially if they have the added upheaval of moving away from their home, school, and possibly even their friendship group.

It also highlights the vital role life insurance can play in helping a family pick up the pieces.

With the right level of life insurance cover, parents are better able to provide the ongoing financial support a family needs in the event of sickness or injury.

That could include paying off the mortgage, staying on top of household bills, and paying long-term education costs – giving children the best chance of getting on with their lives.

Some of the key findings of the report:

• 63% of respondents had less than a week’s warning prior to a parent’s death.

• 64% of deaths were the family’s main or equal financial provider.

• 32% of families moved house as a result of financial pressure within the two years after the loss.

• 48% of those who were children experienced worsened academic performance (78% of those who changed schools).

• 1 in 2 children who lost a parent have suffered from clinical depression. This increased to 69% when children had to change schools due to financial pressure.

• 78% of those who did not have insurance agreed that in hindsight it would have helped if their parent/partner had had life insurance.

Contact us

To find out more about the information in this article contact Charles Choong on 03 9654 9886, or you can send an email to firstpacificfs@gmail.com for more information.

Important information and disclaimer

This publication has been prepared by Charles Choong (ARN 244 731) is an Authorised Representative of Professional Investment Services (ABN 11 074 608 558), Australian Financial Services Licence 234 951.

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Professional Investment Services Pty Ltd (

PIS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither PIS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.