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Parents going for broke

Children are at risk of inheriting debts from their parents if adults in the UK do not take out life insurance policies, according to Life-Insurance-Online. Over 30,000 Brits were declared bankrupt during the first quarter of 2007 according to government figures and household debt reached £1.3 trillion in the UK in an April study by Ernst & Young.Credit borrowing has become a part of everyday life with affordability otherwise becoming a major issue for families as house prices continue to rise, yet income will vanish in the event of a parental death, perhaps leading to financial problems for the children."With household debt at an all-time high, kids today could be facing a grim future if their parents die without adequate financial protection," said Life-Insurance-Online boss John Williams. "Whilst borrowers may have a strategy for how they are going to pay off their debts in the future, the best-laid plans will stand for nothing if they die before they have achieved their aim and have no safety net either."Most parents want to give their children the best start in life they possibly can but coasting along without life cover could mean leaving them financially handicapped and put them at risk of losing out on their inheritance," Mr Williams concluded.

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