‘’It won’t happen to me’. If you’ve watched my video on www.lizzieslife.co.uk you will see how close to my heart this comment is. A common perception amongst many people particularly those that are young. But the truth is death comes to all of us and many people still of a working age fall ill or ‘the worst does happen’.
Misunderstanding their needs. Many of us do not appreciate the magnitude of our needs and avoid evaluating the true financial impact should the worst happen
Affordability. How affordable is protection? Many believe it is out of their financial reach, not realising that actually cover can be affordable Particularly if you are at a young and healthy age. Taking advise on the right cover for you can change your life and give your family peace of mind.
State Support. Some feel confident that state benefits will be sufficient to keep their lives running. But actually state benefits are unlikely to support our average standard of living should a death or illness fall upon your family.
I don’t want to think about it. Unfortunately, it is a unpleasant subject and others don’t want to face the thought or consider the financial consequences.
Insurers don’t pay out. In fact the pay-out from insures ain terms of percentages and figures is a lot higher than you would imagine. This subject I will write about in another article as it is important to know that they do and the reasons this may happen.
Taking steps to face these statements are so important to protect our families. Avoidance could be more detrimental in the long run. It’s not always easy to decide how much life insurance cover you need. Policies can be set up to pay off any debts or mortgage. To provide a lump sum or regular payments to cope with day-to-day finances, or accordingly to the plan you choose. Life insurance comes in many different shapes and sizes and it’s important to take the time to look for a policy that’s best suited to your needs and one that gives you peace of mind knowing that your family is protected. If this feels daunting, the best approach is to first seek advice. There are many ways to find this free of charge. You don’t have to pay someone if you are unsure!
I have researched some statistics based on these statements above which I hope will help.
Research carried out by finder.com/uk compares the number of households with mortgages to the cost of living:
10.96m households in the UK have mortgages.
£131,724 average outstanding mortgage debt in November 2019.
£19,500 average price of household bills for a year.
£3,150 average food bill per house per year.
42% of people with a mortgage have no life insurance in place.
£9,493 is the average cost of dying in 2020, 3.1% higher than in 2019
Only 50% of households with mortgages have life insurance.
Only 50% of households with mortgages have life insurance.
Source: https://www.finder.com/uk/life-insurance-statistics
Analysis conducted by finder.com/uk
The main things to consider when searching for life insurance is the amount of cover, type of policy, health and lifestyle and your age. These factors will depend on the amount to pay per month (your premium) but below shows a study taking the average age and the average cost per month. Maybe this does seem affordable to you?
2The average cost above is based on a level term, life-only (without critical illness cover) single person policy. MoneySuperMarket data January to December 2020
Source: MoneySupermarket
This news article from ABI shows that the percentage of claims paid out by insurers is rising year on year.
Record 98.3% of protection claims paid out in 2019
07/05/2020
‘’New figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.7 billion in protection claims in 2019 – a year on year increase of over £470 million on 2018 – with the percentage of claims paid rising to 98.3%. This is the highest percentage of claims paid on record.’’
Source: https://www.abi.org.uk/news/news-articles/2020/05/record-98.3-of-protection-claims-paid-out-in-2019/
It may be hard but take time to consider the devastating consequences of not having financial protection. Life takes great effort and hard work to keep a standard of living, savings for children’s education or saving for retirement. Your fist step to protect this is to speak about it. We are here to help. Your first step could be to contact us if you would like to know more. Refer to my article on ‘Protection Products Explained’ for details on the choices that are available.