Almost half of all couples have no financial protection
How would you manage your finances if your partner died and you were left paying all the household bills including the mortgage? As many as 41 per cent of those living with a partner would have to cover all of the bills from their own salary, a survey suggests.
The amount needed every year to make these payments is £21,700, according to new research, yet many people would struggle to find this money.
More than a third of couples in the UK have also not had the discussion about what would happen if one of them died, which could leave one partner in serious financial difficulty should the worst happen.
Financial advice: The majority of couples would seek financial advice on the internet
Despite 89 per cent of couples knowing about life insurance, 41 per cent don't have a policy in place.
This means if one partner died, the other would be left paying out for things they had previously shared – such as mortgage payments or the money to support their children.
The insurer Budget Insurance asked 2,000 couples how they manage their money and split their finances.
The couples were asked to estimate how much they would need every year to cover household expenses if their partner died and the average amount given was £21,700.
When looking at which financial decisions are important to make as a couple, mortgages and holidays were the top two with 95 per cent of those asked putting them as the most important financial household decision to make.
They were followed by 87 per cent putting loans and credit cards top, 85 per cent choosing life insurance, 83 per cent choosing pension contributions and then 77 per cent picking energy costs.
More than a third of couples haven't discussed what would happen if one died
Around half of those asked said they make important financial decisions together and 46 per cent said they were better at handling the joint finances, 32 per cent said both partners were equally good at managing their finances while 19 per cent said they thought their partner was better at it.
Just 10 per cent said their partner makes the financial decisions and of those 61 per cent said it was because their partner did a better job, 31 per cent said they found it too stressful and 30 per cent found it too boring.
Respondents were also asked where they would go for financial advice before making a big decision. The number one resource, picked by 44 per cent of couples, was the internet, followed by 21 per cent asking their parents, 18 per cent seeking advice from friends and 16 per cent going to an independent financial advisor.
The majority of couples asked said it was easy to make a financial decision but 29 per cent said it usually resulted in an argument.
Half of those aged 18 to 24 and 46 per cent of those aged 25 to 24 said they argued with their partner about household bills while only 16 per cent of those aged over 55 did.
Unsurprisingly, 62 per cent said dealing with finances was a necessary evil while 16 per cent said they bury their head in the sand about their money.
Couples were also asked about sharing their money with their partner and 63 per cent said they had a joint account where they put an average of 66 per cent of their earnings. Half of those asked said they were happy to pool their incomes.
A third of couples said talking about financial decisions would cause an arguement
The research also looked at how finances have changed over time between couples. A quarter of those asked said during their childhood both of their parents made joint financial decisions, compared to 47 per cent of couples today.
It's also far less likely today for the man in a relationship to be in charge, with 42 per cent of over 55s saying it was their father who made the financial decisions compared to 26 per cent of 18-24-year olds today.
Budget Insurance managing director Mark Townsend said of the findings: 'Overall we are pleased to see that couples feel they are good at managing their finances – but our findings reveal a worrying gap in many people's financial planning.
'Many of us shelve the tricky conversation about how we'd cope if the worst happened, but we all want to protect the ones we love.
'Facing up to that chat and securing a safe financial future for our partners doesn't need to be complicated and could cost as little as a cup of coffee a week. We'd suggest it's a small price to pay for peace of mind.'