Life insurance: Protection missed amid apathy
Life insurance apathy leaves £2.3 trillion protection gap
Monday, 10 Mar 2008 12:03
Some 20 million Brits do not have any form of life insurance and so are exposed to unnecessary financial risks.
Figures from Swiss Re reveal the UK's protection gap - the difference between the life insurance and financial protection cover Brits have and the amount they need to meet their needs - now stands at £2.3 billion.
A third of people have no life insurance in place because it is still on their 'to do list' or its importance hasn't occurred to them, as a poll from Norwich Union reveals the levels of apathy to protection in the UK.
A fifth of people choose not to have life insurance as they have no dependents, feel no need or because they do not have a mortgage.
For three per cent a lack of understanding in life insurance products is holding them back.
Darren Dicks, at Norwich Union, said: "These findings are cause for concern as they suggest many people are taking an ‘it won't happen to me' approach to protection."
Some 52 per cent of all UK adults have no life insurance cover and the rest are either underinsured or unsure about what cover they have, the poll revealed.
"There is currently a £2.3 trillion protection gap in the UK which leaves a large proportion of the population vulnerable," Mr Dicks added.
"Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait."
For 44 per cent the spark that leads to taking out life insurance is buying a home, while for 13 per cent it is getting married or moving in with a partner.
Divorce or separation inspires 14 per cent of those buying life insurance to get protection.