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Life insurance would boost inheritance

Date: Wed, 14 Jun 2006

It is estimated that one in five people will not leave an inheritance despite the growing affordability of life insurance.

A new survey from life insurance provider Prudential questioned a total of 2,000 people and discovered that many were not planning on leaving a lump sum to relatives or children.

However, there is a growing trend amongst parents to give their offspring large amounts of money over the course of their lifetime. Yet such donations are often not enough to provide a long term and financial stable future for loved ones.

The average grown-up child admitted they would need at least £14,000 to out financially, whilst parents preferred to give around £5,500.

Ali Crossley, Pru UK's director of lifetime mortgages, said: "Parents are providing more financial help to their children than ever before regardless of the age of the child and I expect this 'pre-heritance' to be a trend that continues."


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