Studies show that people in the UK generally place more emphasis on insuring their homes, their vacations, their pets and even their mobile phones than they do on insuring their lives!
According to new research , 64% of people in the UK have taken a home insurance policy but only 32% have opted for life insurance. Furthermore, the figures reveal that:
66% of people aged over 35 do not have life insurance cover;
84% do not have critical illness cover; and
58% of people with pet insurance and 47% with mobile phone insurance have not got life insurance!
REASONS FOR RELUCTANCE
How comfortable are you discussing death? What about your son death? One’s own mortality is never a pleasant conversation to have with anyone; even in a hypothetical situation. If you are in the age group of 40-something and below, that topic seems all the more morbid – one that is too early to even think about.
Even critical illness and any kind of permanent disability are issues you would not (want to) consider planning for. Especially if you are in at least a decent state of health. Even less so if you are below the age of 50.
LIVING THE GOOD LIFE
Like most of us, you want to give yourself the best life you possibly can. That is the reason we earn money: to finance our lifestyle.
With age, we accumulate other responsibilities; such as family, who depend on us for their own wellbeing. We may need to borrow money sometimes, to acquire key assets such as a car or a home. While that doesn’t trouble us because we know we can comfortably pay it off in due course, it is also a responsibility we take on.
With experience, we learn that there are good times and bad times. The former is a good time to save up and (at least financially) prepare for the latter. The recent COVID-19 pandemic was a painfully accurate illustrator of this.
Nobody can deny the fact that we should build up financial security during the accumulation phase of our life — i.e. while we are still young — for when we might need it most. Unfortunately, nobody can predict if and when that time might come for any of us.
WHY SHOULD YOU CONSIDER INSURANCE COVER?
There are a number of reasons why you might need life cover and critical illness cover. If you have dependents, then it is important to make sure they will be financially secure if something happens to you. If you have a mortgage or other debts, then life cover can help to pay these off.
Critical illness cover can provide you with a lump sum of money if you are diagnosed with a specified serious illness, which can help to cover the cost of treatment and make sure that you and your family are financially secure.
It is a way to help protect the journey towards meeting your financial goals.
According to the research mentioned earlier, less than half (45%) of those polled say their existing life insurance policy will cover their mortgage; and only a quarter (24%) say it would cover their current salary. A further 15% say it will only cover the basic cost of living for their dependents, 4% realized that their current policy covers a previous salary which is lower than their current earnings, and 20% admit they simply don’t know how much their life insurance would cover.
Whether it’s to protect your family or other loved ones, it is important to take professional advice and make a plan, which can be reviewed regularly, to ensure that the people that matter to you are taken care of and that your financial goals can be achieved.
MAKE SURE YOUR LOVED ONES ARE LOOKED AFTER, SHOULD THE WORST HAPPEN.
We’re here to help you protect your loved ones today, so you don’t have to worry about tomorrow. To discuss your plans or for further information, please contact us.
1 Source data: The research of 1,000 nationally representative UK adults was commissioned by Find Out Now in November 2021 on behalf of Brewin Dolphin.
