Three quarters of the population do not have life insurance
Almost three quarters of the UK population have no life insurance, according to exclusive new research from Moneywise. It indicates that millions of British households could face financial hardship from failing to protect themselves.
The findings, from the Moneywise Consumer Opinion Survey of 20,000 people, reveal that just 27.5% of adults surveyed admitted they had life insurance.
This is less than the number of people who said they had travel insurance (27.9%) and far less than the number of people who said they have home buildings and contents insurance (61.1%).
The findings come in the same month that insurer Scottish Widows warned that families could be risking their livelihood by failing to protect themselves financially.
The insurer said that over half (52%) of the UK population with at least one wage earner in the household is reliant on a single income in order to make ends meet for their family. But the firm also found in a survey that two thirds of people do not have life insurance – almost mirroring the Moneywise findings.
Katya Maclean, Protection Expert at Scottish Widows, said: "No one likes to think about the unexpected happening to them, [but] it is clear that this tendency to ignore the worst case scenario is preventing families from preparing for the future and protecting their livelihoods."
The results of the Consumer Opinion Survey have been used to crunch the shortlist for the Moneywise Customer Service Awards 2013 – at which Britain's most trusted life insurance provider will be announced on 13 June. The shortlist can be viewed here.
Read the June 2013 issue of Moneywise – in stores on 30 May – for our exclusive feature on the dangers of overlooking protection.
Generally thought of as being interchangeable with life assurance, but isn’t. Life insurance insures you for a specific period of time, at a premium fixed by your age, health and the amount the life is insured for. If you die while the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term or cease paying the premiums, the policy is finished and has no remaining value whatsoever as it only has any value if you have a claim. For this reason, life insurance is much cheaper than life assurance (also called whole of life).
Does exactly what it says on the tin: covers the contents of your home for theft and damage and also may insure certain possessions (jewellery, cycles) outside of the home. Things to watch for include the excess and also the maximum payout on individual items. Another grey area is kitchen fittings, as some contents policies say these are not contents but part of the fabric of the property and covered by buildings insurance and some buildings policies don’t cover them because they regard them as contents.