Lack of life insurance raises alarm bells - Life insurance - News - Moneyfacts

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Lack of life insurance raises alarm bells

Lack of life insurance raises alarm bells

Category: Life insurance

Updated: 17/10/2016
First Published: 17/10/2016

Many of us realise that we should have life insurance, yet far too few actually take the plunge and invest in a policy. This could be a big mistake, as failing to have sufficient protection could put your family's finances in jeopardy should the worse happen.

Research from Specialists4Protection.co.uk show that 44% of those with children aged 18 or under, and/or who are married and in a long term relationship, don't have any form of life insurance, a figure which rises to 72% when considering those without critical illness cover.

Not only that, but even those who do have such a policy may be dangerously under-insured, with 23% of those with life insurance only having enough to cover one year's salary, while a further 19% are insured for the equivalent of just two years' income and 30% would be covered for between three and five years.

Given that the advisory firm suggests that people should have nearer 20 times their annual salary in life cover – something that just 3% of those with life insurance have – the vast majority clearly lack sufficient protection.

"It's alarming to see how many people who should have life insurance don't, but also how underinsured most people with this cover are," said Paul Litster of Specialists4Protection.co.uk.

"If you have dependents, having adequate life insurance is one of the most important financial decisions you will ever make, but many people tend to just pluck a figure from the air when deciding on their level of cover without working out what their loved ones would need."

Don't be one of them! It's not only vital to have a life insurance policy, but it's just as essential to get the right level of cover, otherwise you're paying for something that will have limited value should the worst happen. Make sure to speak to the experts so you can be confident you're making the right decision – start the process by using our life insurance quote tool to see the kind of policies available, and take it from there.

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 Any products featured may be withdrawn by their provider or changed at any time.

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