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Half of Britons are neglecting life cover

Half of Britons are neglecting life cover

Category: Life insurance

Updated: 26/11/2012
First Published: 02/03/2010

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 It is now over 6 months old so the content may be out of date.
Almost half of Britons are jeopardising their financial futures by neglecting to take out insurance to cover loss of income through illness or death of a breadwinner.

Twenty four million people are thought to have no cover in place for such an event, according to research conducted on behalf of Friends Provident by 72 Point.

Furthermore, even those who said they had considered taking out an insurance policy to provide if the main earner of a household was unable to work or died, would be underinsured by an average of £14,500 a year.

A third of people estimated that they could live on less than 35 per cent of their take home pay if they suffered a serious injury or illness. That equates to just £171 per week for an average earner - £300 less than the current average household expenditure of £471.

"It is time people took control of their future and looked at this in a responsible way, instead of burying their heads in the sand, especially in today's environment," commented Ed Stuart-Brown, head of protection sales for Friends Provident.

"Ignorance is not bliss, it's irresponsible."
Of those who have policies in place, some 53 per cent said they were unaware of how much they would be paid out if they made a successful claim.

This suggests that many policies may no longer be adequate, especially in cases where circumstances – such as salary increases or starting a family – have changed.
Mr. Stuart-Brown said people should dig out their policies to ensure they have made adequate provisions should the unexpected happen.

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