Peo­ple ad­mit lack of in­sur­ance

The Oban Times - - Busi­ness -

A RE­CENT sur­vey, ac­cord­ing to Ar­gyll Fi­nan­cial Ser­vices, has re­vealed that up to 60 per cent of adults don’t have any life in­sur­ance.

When asked why, the an­swers vary. Some peo­ple sim­ply don’t want to think about life’s un­ex­pected events and don’t be­lieve it could hap­pen to them. Here are a few stark sta­tis­tics. It is es­ti­mated that ev­ery day in the UK, around 500 women be­come wid­ows, more than 100 chil­dren lose a par­ent, and ap­prox­i­mately 75 men aged un­der 50 be­come wid­ow­ers.

When asked why they don’t have life in­sur­ance, peo­ple of­ten say that poli­cies don’t pay out in the event of a claim, but in fact 97.2 per cent of pro­tec­tion claims are paid.

Ac­cord­ing to fig­ures from the As­so­ci­a­tion of Bri­tish In­sur­ers, UK in­sur­ance com­pa­nies pay out more than £10 mil­lion ev­ery day on pro­tec­tion poli­cies, in­clud­ing in­come pro­tec­tion, crit­i­cal ill­ness and life in­sur­ance.

An­other com­mon mis­con­cep­tion is that cover is ex­pen­sive. Many peo­ple are sur­prised to learn that life in­sur­ance pre­mi­ums are eas­ily af­ford­able. It’s a small price to pay when you con­sider that hav­ing no in­sur­ance could mean real fi­nan­cial hard­ship, es­pe­cially for less well- off fam­i­lies.

If you were to die, how much money would your fam­ily have to live on?

Many fam­i­lies would find them­selves run­ning short of money very quickly. Your salary would stop, but the house­hold bills would keep com­ing in.

Even if you are not the main bread­win­ner, you may still be the pri­mary care giver, pro­vid­ing house­keep­ing and other home- based ser­vices that are vi­tal to your fam­ily’s well­be­ing and would cost a lot to re­place.

A pay- out from a pol­icy could make the dif­fer­ence be­tween your loved ones fac­ing a fi­nan­cial strug­gle at a chal­leng­ing emo­tional time, and be­ing able to main­tain the sort of lifestyle they en­joyed when you were still around.

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