While the majority of Brits make it their business to insure everything from their business, income, homes, cars to their health, travel and indeed, pets, the same prioritising isn’t afforded an equally important area of all of our lives, just that; our very lives.
It’s all very well taking the necessary financial steps to safeguard our lifestyles but what about the very thing that allows us to enjoy a way of life in the first place? Apparently only 1 in 4 breadwinners here in the UK fail recognize the importance of a dedicated life insurance policy, which in turn leaves dependents with a cover gap of some £263 billion in their wakes.
Insurance product aggregator, www.moneysupermarket.com has calculated that some 8.5 million adults with loved ones haven’t had the foresight to sort out a life insurance policy so as to cover all potential bases.
In the event of a main family provider (from a financial perspective) passing away unexpectedly, subsequent dependents would in most cases struggle to cope monetarily in the aftermath of the deceased being taken away from them prematurely. And when confronted with the nominal costs involved in arranging a far-reaching life insurance plan (policies can start from as little as £6 per month for a 25-year old re: a 25-year term with £200,000 worth of cover), then there are few excuses as to not doing it before it’s too late.
According to www.thisismoney.co.uk, a mere 45% of men (and 38% of women) designated as the predominant breadwinners in households have life cover in place as we pen this.
This equates to almost 8.5 million people in the UK and with average life insurance payouts of £31,000 per person, according to the Association of British Insurers, there is a £263 billion gap for the families of those who don’t have a policy in place.
New study reveals that many UK workers overlook the vital financial lifeline that a life insurance plan would afford dependents after their death
Industry-wise and it’s typically those working in the public sector who choose to shun life insurance the most when perusing the figures which have recently been released, yet experts argue that this isn’t that big a surprise when you take into account the fact that salaries tend to be lower in the public sector, on average, compared to those in the private sector – which boasts 61% life insurance coverage amongst its members.
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Of those industries which do appreciate the vital role that a life insurance policy would play should the worst scenario pan out, and it’s those employed in the manufacturing industries who opt for the most cover, with an impressive 69% of this sector workforce having one in place.
Citing the construction sector within this larger manufacturing picture, and the subsequent breakdown of stats sees some 58% of employees having arranged a life insurance policy. In contrast, people employed in the health and education industries have been found to possess the least amount of cover, at 42%.
Irrespective of what industry people work in, Moneysupermarket recommend that they sort out an all-encompassing life policy so as to ensure that there’ll be enough money left in the kitty at the end of the day in the eventuality of the main breadwinner’s untimely demise. At least this way their survivors won’t be faced with unsurmountable and on-going debts thereafter (be they mortgage payments, loans, finance agreements, credit cards, school fees and of course, the funeral which is an expensive outlay in its own right).
Moneysupermarket’s research was undertaken last December, whereby it polled just over 2,000 people and went on to align the results with nationally representative criteria. Moneysupermarket’s spokesperson said; “Life insurance is there to help provide for your loved ones when they can no longer rely on your income,” concluding; “Anyone with a partner or children who are financially reliant on them should think about life insurance. Avoiding the matter can put loved ones at grave financial risk and it’s worrying to see how many breadwinners – male and female – are doing this.”
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