Life insurance Updated:
The vast majority of UK families are walking a protection tightrope, with many facing financial ruin should the worst happen.
A massive 93% of families do not feel they have adequate financial protection, with more than six in ten (61%) not even having a life insurance policy.
The research by Aviva also found that 87% do not have critical illness cover, while 89% shun income protection.
It means that millions of people are putting the financial future of their families at risk, should they lose their job, fall ill or pass away.
Perhaps unsurprisingly, it is single parent families that are most vulnerable.
Three quarters (76%) of single parent families and 68% of divorced parents with two or more children said they felt financially underprotected.
It appears that not even bad experiences can reverse the underprotection trend, as four in ten families admit to being seriously affected by illness in the past, but still do not have any policies in place.
One in five families said they have not bought life insurance because they thought it was too expensive and they could not afford it, while 5% believe it never pays out and therefore isn't worth buying.
In fact, data from Aviva shows 99% of life insurance claims are paid out, with an average sum of £51,000 paid off.
"The bedrock of any financial planning should look at what measures are in place in case the worst were to happen. If this is ignored then any financial plans are set in sand with no firm foundation," said Louise Colley, head of protection marketing at Aviva.
"Life insurance and income protection can provide families with financial peace of mind in the unfortunate event of a sudden loss of income, and critical illness insurance can provide a lump sum cash payment should the insured suffer serious illness or disease.
"By making sure they have financial protection in place, families can have invaluable peace of mind for a more financially secure future."
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Under no circumstances should you cancel an existing life insurance policy until a new one has been arranged. Torquil Clark Life Insurance is a trading name of LifePolicies Direct Ltd which is authorised and regulated by the Financial Services Authority.
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