How many UK adults have no life insurance?
My informal survey of my mates suggests 50%. Given the downturn I believe many people reduce their outgoings by cutting back on insurance.
A survey by Aviva has revealed that apathy is leaving 20 million UK adults at financial risk because they don't have any form of life or income-related protection.
Figures from Aviva Life Insurance show that of those without any life cover...
more than 37% say this is because it's still on their 'to do' list or that they haven't thought about it
one in seven (15%) say they have made other provisions
one in ten (10%) haven't bothered because they have no dependents and feel no need for a life insurance policy
9% say they don't have it because they don't have a mortgage to insure
3% of people say they haven't taken out a policy because they don't understand it.
Head of protection marketing at Norwich Union, Darren Dicks commented... "These findings are cause for concern as they suggest many people are taking an 'it won't happen to me' approach to protection. Around 52% of UK adults have no life cover at all* and the remainder are either underinsured or unsure about what type of cover they hold.
"There is currently a £2.3 trillion protection gap in the UK which leaves a large proportion of the population vulnerable. Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait."
Aviva's research also reveals a number of key 'trigger' events which motivate people to purchase life insurance cover. These events include:
Buying first home: 44%
Moving home: 18%
Getting married or moving in with partner: 13%
* Source: Swiss Re | 01.07.11 @ 15:38
You will probably find the gap to be larger, it has been estimated at over £3tn.
the main problem is that people tend to think of "life cover" ie payment in the event of death when often the financial loss that you are wanting to protect against will be greater if you are ill and unable to work (the type of cover provided by critical illness and income protection). The rationale behind this is that your living costs still need to be paid but might increase if you develop special needs - emotionally it can be worse too as you are able to see the impact of your decision not to take cover.
there are many ways people can save even small amounts of money to buy some cover. even £10 per month would be a good start, it wont buy much cover but something is better than nothing. And where can you find £10? perhaps give up one cappucino a week? use www.petrolprices.com to find a better deal on your petrol/diesel?
both relatively painless life changes without jumping on the bandwagon of give up smoking (although that will save a small fortune and make the cost of cover cheaper once you are 12 months tobacco free) | 01.07.11 @ 18:26