Nearly half (49%) of the UK’s parents do not have a life insurance policy, according to our latest research. Of those parents in a relationship, over one in three (35%) did not have life insurance for either parent. So it would appear that many families are worryingly unprepared should anything happen to mum or dad.
Our research, conducted at the beginning of January, surveyed over 4,000 parents to understand how prepared parents were in the event of accident or illness. We discovered that as well as those that didn’t have life insurance, nearly two thirds (64%) of parents don’t have a legally valid will, and only one in five (21%) parents are covered for critical illness.
This new research highlights that many parents are seemingly unprepared if things were to take a turn for the worse. So why are so many parents without life insurance? Well, one of the biggest barriers for our parents was cost. Half of the parents surveyed said that they had not taken out a policy because it was too expensive and they couldn’t afford the monthly repayments.
But there is clearly some confusion around the cost of life insurance, as despite many parents citing cost as the reason they didn’t have a policy, a convincing 54% admitted they did not know what the monthly cost would actually be. What’s also concerning is that 11% of parents admitted that they didn’t see the benefit of having life insurance, meaning that there is evidently a need to provide clearer information around life insurance, the costs and the benefits to families and loved ones.
Life insurance can offer invaluable peace of mind, knowing that your family can continue to live their normal lives if anything were ever to happen to you. Whether it’s covering the cost of your mortgage, or accounting for the loss of income, a life insurance policy could ensure that your family are provided for in their time of need.
It would seem that, for some of the parents we spoke to, the benefits of having life insurance are enticing. Over a third (34%) of our uninsured parents admitted that they would consider taking out a policy if the application process was simple and if it was clearer what level of pay-out they would receive in the event of their death. Many mentioned their mortgage, their desire for their family to maintain their current lifestyle, and the possibility of providing a nest egg for their family at a later stage in their lives, as key motivators for wanting life insurance.
Jody Baker, our Head of Life Insurance, says, “Many people take an ‘it will never happen to me’ approach, but life insurance provides an important safety net in the event that your loved ones can longer rely on your income if something terrible should happen.
“It is particularly worrying that so many parents find the process of buying life insurance complex and off-putting and that they feel the cost is beyond their means, when in fact a healthy 30 to 35 year olds pays on average only £8 per month for ten years of cover. Insurers clearly have to work harder to communicate the benefits of this product to customers and make the process as simple and easy to understand as possible.”
So, is it time for you to review your finances and take some steps to make sure your family will be looked after if the worst was to happen? You can find out more information about the different types of life insurance and level of cover now. We make finding the right life insurance simple and by comparing life insurance quotes you can ensure you’re getting a good price and the right level of cover for you and your family.