New research shows suffering financial stress after losing a parent can cause further psychological, educational, practical and social disadvantage to surviving children.

The Picking up the Pieces report by ING Australia encourages parents to take out realistic life insurance cover. It surveyed 1024 Australians and found the added pressure of moving house or schools due to financial stress can significantly add to children’s trauma.

Key findings of the report included that 64% of children who had to move homes said their academic performance suffered, while of those who had to move schools 69% suffered from clinical depression and 75% suffered depression, anxiety or panic attacks.

ING Australia GM Insurance Gavin Pearce says the survey shows 63% of surviving partners had less than one week’s warning of the death, highlighting how little time there was to plan for the loss.

“We recognise this is a sensitive topic but without some planning for the unexpected, it would be incredibly difficult for the majority of Australian families to maintain their current standard of living,” he said.

“Planning for the unexpected is a critical part of good parenting and our financial advisers will now be even better equipped to discuss these issues with their clients, to determine how to best provide for their family’s future.”