Research has revealed that only 35% of people have life insurance, despite 60% stating life insurance would benefit their family.
As part of a study by Direct Line Life Insurance, findings showed that there is a substantial gap between households that think life insurance is important and those that actually are covered.
It was also revealed that of those that do not hold a life insurance policy, over a third (35 per cent) believe that policies are too expensive.
However, more than two-fifths (42%) of households admitted not knowing how much life insurance costs.
While factors such as age, lifestyle and cover chosen will affect the price, many households seem unaware that life insurance policies can start from £5 a month.
Of those who own a life insurance policy (35%), some of the main reasons for taking one out include wanting to provide cover for any funeral and other costs that may arise (33%), making sure loved ones are financially looked after (32%) and to help pay off a mortgage or other debts (28%).
Vincent Guadagnino, Communications Manager at Direct Line Life Insurance, commented:
“It is encouraging that most households see the benefit of holding a life insurance policy, but it is surprising how only 35% of people have taken one out. Our research suggests people expect it to be too expensive without even looking at the potential cost. Despite the cost-of-living crisis limiting household expenditure, many people are unaware that basic life insurance policies can be cheaper than many streaming services, magazine subscriptions or gym memberships.
While we may avoid speaking about it, life insurance is there to give your family vital financial support if you died or were diagnosed with a terminal illness – whether that’s covering mortgages, funeral costs or other debts. It is sensible to think ahead and plan accordingly to make sure loved ones are cared for, so we encourage people to investigate a life insurance policy not just for the sake of financial peace of mind, but also to make a smart choice when evaluating personal finances and discretionary spends.”
