Life insurance Updated:
Living without a mobile phone or a speedy internet connection may be unimaginable nowadays, but it seems that for some people, protecting these modern comforts has assumed a greater importance than that of protecting their income or mortgage should financial difficulties arise.
According to the latest Protection Report from Scottish Widows, Brits now consider protecting their mobiles and internet connection as top financial priorities. Eight out of 10 of those questioned (80%) considered broadband as being essential for daily life with another 71% arguing the same for mobile phones. However, only 39% viewed providing financial security for their family in the event of their death in the same light – a significant drop from the half of people who said the same in 2011.
Providing for the family or loved ones if critical illness struck or if a partner became unable to work was also viewed in an unfavourable way – just over a quarter of those questioned (28%) reported that this was a financial necessity.
These results are worrying, particularly as a quarter of respondents admitted that they didn't know how they would cope if one wage earner was unable to bring home an income. Another quarter reported that they didn't know how long they could afford to pay their mortgage in this situation, or that they would run out of money in just five months.
The figures suggest that those with mortgages, and who re just starting a family, are most switched on when it comes to financial protection. Those aged 35 to 44 years old were found to be the age group with the largest proportion of insurance protection, with 54% having mortgage cover, 17% having critical illness protection and 7% having income protection. Furthermore, almost 45% of those aged 35-49 said that having life insurance was essential, while another 24% stated that protecting their or their partner's income was crucial.
"Although short-term priorities tend to dominate when it comes to the way we assess our needs and spending, it is more important now than ever to have an appropriate plan in place at the right time to protect our homes and families, not only for peace of mind, but to safeguard the time and money we invest throughout our working lives for the future," commented Esther Dijkstra of Scottish Widows.
So, what can be done?
If you've been guilty of prioritising your possessions over your life and income, then now is the time to do something about it! Getting life insurance, income protection or cover for critical illness can help to put your mind at ease, and with monthly payment options, it doesn't have to be a wallet-emptying experience.
To find a policy that matches you and your income requirements, start hunting the market and comparing quotes. You can use our no obligation insurance comparison tools to get started. Once you're covered, you can rest assured that you and your family will be secure, whether life throws you a curveball or not.
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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