Over half of UK adults (56%) have no life insurance according to a new report from Scottish Widows.
The research, as part of Scottish Widows’ Consumer Protection Report, estimated that 28 million people in the UK do not have any life insurance in place to protect their loved ones if something were to happen to them.
The report, which polled 5,148 UK adults, highlighted common themes regarding people’s perception of life cover and in particular the fact that for many people, insuring against death or loss of income is not considered a financial priority.
It found that more adults insure their pets (15%) and mobile phones (13%) than they do their income in case of ill health (12%). Interestingly, it appears that this isn’t due to any real lack of awareness of life cover – 97% of respondents said they were aware of life insurance and the importance of having it, yet only 44% actually had cover in place. Awareness of critical illness was also high (86%), yet only 12% of people said they had such cover.
It’s a worrying, but unsurprising statistic that people tend to prioritise things like broadband or their mobile phone ahead of protecting their income. Just 15% of respondents said they would consider cutting back on broadband internet access, whilst a fifth said they would be prepared to cut back on critical illness and life insurance.
The truth is that if a family were to lose its main income, then unless it had cover in place or sufficient savings, simply cutting back on things like broadband or satellite TV would be unlikely to ease the financial strain or help meet major commitments like a mortgage.
For more information on the different types of cover available and how they can protect you and your family, visit the life insurance section of our website.