Life insurance Updated:
As a nation we protect our homes, our belongings and even our pets more than we do our lives, with a worryingly small proportion of the adult population investing in suitable life insurance. Well, research from SunLife suggests that much of this could be due to a dramatic overestimation of the cost involved, so it could be time to reconsider your priorities.
The figures show that respondents typically overestimated the cost of life insurance by a massive 394%, so it's no wonder so few people take out this kind of protection! On average, respondents thought that £100,000 of life cover would cost £50.98 per month – almost five times more than the average premium of just £10.31.
Overall, 47% of people have no idea how much life insurance costs, a figure that rises to more than half (53%) of those who cited affordability as the reason why they have no life cover, and to 58% among those aged 55-65 years-old. But, that doesn't stop people worrying – 26% of those who don't have life cover are concerned that they don't have it, with 11% saying that their family would lose all or most of its income if the worst were to happen, while 8% admitted that they didn't know what the financial implications would be.
Worryingly, this kind of thing isn't only a concern for the uninsured, either – even among those who do have life insurance, just 39% of people are certain they have enough cover, while 11% said they know they're underinsured and 15% don't know how much cover they have in place.
"Our research shows people are not protecting themselves with life cover because they think it is much more expensive than it is; this misconception needs to be addressed," said Dean Lamble, managing director at SunLife. "It is worrying that there are many families out there who either have no life cover or insufficient cover in place simply because they are overestimating how much it costs."
He calls on the industry to "make life insurance more accessible so that more people realise they can afford it", particularly given the fact that so many people are concerned that they're not covered. The overriding message is clear – make sure you're covered! Knowing that your family is protected should the worst happen can be a huge weight off your mind, and as the figures show, it can cost far less than you think.
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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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