Statistics from finder.com shows that 15% of the UK do not have life insurance policies in place, equal to around 8.5 million people.
Life insurance is essentially a policy on your life, designed to pay out a huge compensation claim to your loved ones in the event that you die. With your spouse and children potentially living without the family’s main breadwinner, the policy is based on a pre-determined value by the insurer to help cover basic living costs including mortgage payments, school fees, food and other basic necessities.
Closely connected to life insurance is critical illness cover and income protection – both types of policies used to protect your family’s finances in the event that you are sick or injured and unable to fulfil your work and duty as a main earner.
Critical illness cover can be valued according to each body part, whereby different sizeable claims are paid out based on losing sight, hearing, joints, limbs and bones.
However, the lack of UK workers taking out life insurance is a worrying trend as it fails to prepare for tomorrow and ‘what could be.’ The result of sudden death to a family’s breadwinner could put huge financial strain on the family and their children, particularly if the partner has not back up career or source of income. This opens opportunities for moving back in with parents and relying on support from other family members.
With life insurance policies sometimes costing just a few pounds per month, it seems surprising that more people are going without it. There are companies looking to overcome this deficit, including Union Income Benefit providing discounting cover to those who belong to trade unions such as Unite and Unison.
On a corporate level, insuretech companies such as yulife are offering bespoke plans for companies to offer life insurance as part of an employee benefit. In fact, a recent survey carried out by yulife showed that life insurance was considered to be in the top three benefits that employees appreciated the most, which included flexible work hours and childcare vouchers.
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