People admit lack of insurance

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.