According to recent surveys, many UK consumers are more likely to prioritise savings over life or health insurance to protect their finances.
COVID-19 has highlighted a longstanding lack of consumer trust and engagement that many consumers have with important insurance products. This needn't be the case though, as according to figures released by the ABI (Association of British Insurers) 98.3% of protection claims were paid out in 2019. Despite this, many consumers still believe they’d be better protected with savings, regardless of the fact that in many cases, it wouldn’t be anywhere near what would be required to cover the costs of critical illness or death.
The cost of purchasing a policy is also a factor for many, however this is more perception than reality as the cost of cover for many people often works out at just a few pence a day. When you consider this, many would have to agree that life insurance could actually be considered very good value for money.
If your children, partner or other family members depend on your income to cover their living expenses and the home they live in, you should definitely consider life insurance to help provide for your loved ones in the event of your death. You can’t rely on the state to take care of your family as the money they would get from the government is probably much lower than you’d expect.
Nobody knows what the future holds, but everyone knows what and who’s important to them.
A lack of understanding (and effective communication) of the benefits of life insurance could also be to blame for this, as it can be daunting for many who don’t really know what they’re looking for.
Everyone understands a pot of cash, whereas not everyone understands what a ‘decreasing-term policy’ is.
The 2 main types of life insurance are 'term' life insurance and 'whole-of-life' insurance.
Having savings as extra protection is also a good idea, as is working towards paying off whatever existing debts you may have, however it shouldn’t be considered a substitute for having life insurance cover in place.
Speak To Us
At Cavendish, we’re committed to providing our customers with the information they need to make an informed choice about what kind of policy is right for them.
If you don’t currently have any cover in place or if you’re not sure that it still meets your needs - the team at Cavendish can help. Go online to get a quote or simply call us on 03456 44 25 40.