New research from Compare the Market claims that one in eight people have named ‘chosen family’ as their life insurance beneficiaries.
The brand surveyed UK adults to understand how traditional assumptions around family, inheritance and financial dependency are changing.
With 8.4 million people in the UK now living alone, ‘chosen family’, which the comparison website breaks down into lifelong friends, mentees and unmarried partners, are becoming a new financial priority, they say.
The study of 2,000 people found that amongst policy holders nominating a non-blood beneficiary, 21% opted for a lifelong friend. Unmarried partners tied for first place, whilst just over 7% of respondents said they had named an unrelated youth or mentee.
In 14.65% of cases where a non-blood beneficiary was named, a charity or community cause was the nominee. Compare the Market says that around 145,000 people also left a gift to charity in their will last year, a 15% increase from the previous year.
The study found that almost half (46%) of respondents believe their immediate family would be the most financially affected if they died unexpectedly, while one in seven believe their ‘chosen family’ would be the most affected.
Commenting on the survey, clinical psychologist Dr Daniel Glazer said:
“Closeness becomes defined more by how safe and understood a person feels rather than by any shared history or genetics. The families we choose are the ones who see who we really are, and that can be much more emotionally meaningful than prescribed family roles.
“Responsibility tends to follow love. Financial planning, naming beneficiaries, and safeguarding long-term protection all underscore who means most to us. By naming a friend or partner, we are aligning our formal arrangements with the emotional reality of our daily lives.
“Many legal and financial systems are still set up for narrow definitions of family, so people have to be more intentional about making sure their chosen relationships are protected.”
Emily Barnett, life insurance expert at Compare the Market, said:
“Life insurance should reflect your real-life dynamics, not just a legal definition of a family tree. Whether it’s a partner you aren’t married to, a close friend, or a cause you care about, your policy should protect the people who matter most to you.”
