Thursday 21st August 2008
IT’S OFFICIAL: FAMILY IS WORTH MORE DURING THE CRUNCH
Family worth set to grow despite credit crunch
Britain may be teetering on the brink of recession but the value of the average British family’s possessions is set to increase in the next five years, according to new research by MORE TH>N insurance.
The research predicts that the typical ‘lifesworth’ of British nuclear families – the ‘average’ family of two parents and 2.4 children - will rocket from £70,848 to £90,422 by 2013. The increase of almost 30% (£19,574) will be generated as people look to improve their living-space by upgrading their furniture and possessions, rather than risking a house-move while the property market is so volatile.
But it’s not the just the next five years that bode well for nuclear families- the next two decades look pretty rosy too. In 10 years, the average family will be worth £124,692 and in 15 years, £159,408 – that’s increases of 75% and 125% respectively.
Moreover, the research also reveals the key milestones in a family’s worth during a typical lifetime:
· Moving in together:
When a couple decides to co-habit, their combined possessions amount to an increase of 65% on their total home contents value, as they make the transition from an individual to joint lifestyle.
· Having babies:
Children increase a family’s value greatly – when a couple has a baby, the child immediately adds a cool £2,000 to the family’s overall
· Kids growing up:
At the retirement age (65 years old), children’s departure from home causes a family’s home contents value to decrease by roughly £1,000 per year
The intriguing figures were calculated as part of MORE TH>N’s Lifesworth project, which shows how an individual’s value increases and decreases as the decades tick by or their circumstances change.
Dowshan Humzah, Product Director at MORE TH>N, comments, “Considering the current economic downturn it’s surprising that the worth of the average family is set to rise over the next two decades. After all it is understandable that, in the current financial climate, many people might consider it far safer to invest in the things that make their homes more ‘homely’, rather than risk spending the money on upgrading the actual property they live in. But as individuals feather their nests, it’s important they regularly re-evaluate the value of their home contents to make sure they’re properly protected. ”
To calculate your own Lifesworth, log on to MORE TH>N’s online calculator -
Notes to editors:
Research from the following sources:
1. Consumer research carried out by Fly Research. 1,000 UK adults were questioned in February 2008
2. CEBR statistics – research carried out in February 2008
For further information:
MORE TH>N External Communications
T: 020 7337 5602
M: 07717 294529
MORE TH>N External Communications
T: 020 7337 5369
M: 07824 529276
About MORE TH>N:
MORE TH>N is the direct financial services arm of RSA. It offers motor, home, pet, life and travel insurance by phone and via the internet. It also offers van, shop, office, business car, hotels, property, club and contractor insurance direct to small businesses.
In December 2006 MORE TH>N, together with its parent company Royal & SunAlliance, became the first insurer in the UK to be carbon neutral. The company has cut its carbon footprint by over half since 2000 and has offset the remainder by purchasing voluntary carbon reductions.
MORE TH>N offer free home contents cover up to £75,000 to consumers who take out buildings insurance with the company.
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