MSE News: Bereavement changes leave future widowed parents with less support

Legacy_user
Legacy_user Posts: 0 Newbie
edited 30 January 2017 at 4:55PM in Deaths, funerals & probate
Future widowed parents of young children could miss out on £1,000s once changes to a Government scheme are rolled out...
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'Bereavement changes leave future widowed parents with less long-term support'
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Comments

  • securityguy
    securityguy Posts: 2,462 Forumite
    First Anniversary First Post Combo Breaker
    I realise this has a whiff of "let them eat cake" to it, but if you are of an age to have small children then in most cases life insurance is extremely cheap: a hundred grand, index linked, for 18 years, payable on each death (ie, a hundred grand cover for each parent), is about twelve quid a month for a couple in their early thirties (checked with an Aviva quote just now). Yes, I realise that there are young parents who can't afford twelve pounds a month, but the vast majority can (as otherwise no-one in primary school would be watching Sky and there would be no prams in Costa).
  • VT82
    VT82 Posts: 1,079 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    mse wrote:
    However, widowed parents of younger children could miss out on thousands of pounds.

    There is no 'missing out'. By the time people who will be eligible to claim in future are affected by the change, the scheme will have changed. End of. Tax rules are allowed to change. Benefits rules are allowed to change. It's not like stamp duty where you might look back and think 'oh man, if only I'd completed on my house a month sooner, I'd have saved £6k'. No one unfortunate enough to be affected is going to say 'oh man, if only my husband had died a month earlier, I'd have been eligible for another £4,750 spread over the next twenty years'.
    mse wrote:
    we crunched the numbers and found that only widowed parents with a child aged up to one year, five months and two weeks under the child benefit cut-off (16 or 20 for a child in full-time education) will benefit from the change.

    Your use of 'benefit' is a bit sick in context. I think the government response is very fair on this, and you should stop picking at it and spend your energy on something else.
  • cityzen4
    cityzen4 Posts: 2 Newbie
    What do you say to those who have a chronic condition that may or may not reduce life expectancy? If you try to get life insurance with a number of different conditions you will find two things

    1) It will take a long time to get any cover as you will need to provide extra medical information and jump through various hoops
    2) The cost of the cover can be very expensive

    This policy hits the most vulnerable in society
  • Red-Squirrel_2
    Red-Squirrel_2 Posts: 4,341 Forumite
    cityzen4 wrote: »
    What do you say to those who have a chronic condition that may or may not reduce life expectancy? If you try to get life insurance with a number of different conditions you will find two things

    1) It will take a long time to get any cover as you will need to provide extra medical information and jump through various hoops
    2) The cost of the cover can be very expensive

    This policy hits the most vulnerable in society

    Very good point.
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