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Britons shunning life cover in droves

Britons shunning life cover in droves

Category: Life insurance

Updated: 17/01/2013
First Published: 04/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Britons are shunning life cover in their droves, with people preferring to take out insurance on the likes of mobile phones and pets.

Despite the security offered by such plans, more than half of UK adults – 28 million people – do not have any life insurance in place, leaving their loved ones in a vulnerable position financially if something were to happen to them.

Research by Scottish Widows has found widespread malaise in the number of people taking protection products, such as life insurance, critical illness cover and income protection.

This is despite more than half of adults (54%) saying that they review their finances once or twice every year, and an admission of the importance of having such cover.

Some 97% of people said they were aware of life insurance and the benefits offered, but less than half (44%) said they currently had a policy.

Similarly, when it comes to critical illness cover the awareness remains high (86%). However, the percentage of respondents who have actually taken out a product is worryingly low at 12%.

The same goes for income protection insurance where the awareness is 83%, with take up at just 7%.

In fact, more UK adults insure their pets (15%) and mobile phones (13%) than they do their income in case of ill health (12%).
Shockingly, one-fifth of the population would consider cutting back on critical illness cover (21%) and life insurance (20%) compared to just 15% who are prepared to cut back on broadband access
"We realise that many people do not like to plan for the unknown, however the importance of doing so cannot be underestimated," said Clive Allison, market director of protection at Scottish Widows.

"Our research shows that the majority of people clearly understand the benefits associated with protection products such as life, critical illness and income protection, but that many still don't adequately protect themselves, their families and their homes."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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