Significantly more people insure their possessions than their life, according to Legal & General. In a recent poll, two thirds of people (66%) said that they have home contents insurance compared to just 41% for life insurance. Of equal concern is that more people have mobile phone insurance (22%) versus just 17% who have critical illness cover and 14% for income protection.
Mobile phone insurance can cost up to £11 a month for a single handset. For the same money a 30 year old, female, non-smoker would be able to buy over £240,000 worth of life cover through Legal & General.
Bonnie Burns, Legal & General’s Protection Product Marketing Director says: “The nation’s priorities seem misguided, with people more worried about losing their mobile than about how they would cope financially if they had a critical illness. We all know that it is difficult to face up to our own mortality, but when insuring possessions is prioritised above insuring lives, then something has to be done. Protection insurance is widelyavailable, value formoney and easy to arrange, so there is no reason not to consider it. £6.50 a month could buy £100,000 worth of level term assurance for a female non-smoker aged 30.”
Legal & General asked the 54% of people who didn’t have any protection policies at all (life, critical illness and income protection) about their reasons for not being covered:
29% said that they didn’t have any financial commitments to insure
One in five (20%) thought it was too expensive
16% said that they were too young
12% said that they hadn’t got round to buying
9% said that they were happy to gamble that they won’t ever become ill or die prematurely
Just three per cent were concerned about being turned down for a policy and three per cent were worried that a claim would be declined.
When all respondents were asked how their family would cope financially in the event of their death:
44% said that they don’t have any dependents relying on them financially
15% said that they would rely on savings
9% would sell their property
7% said that their immediate family would rely on handouts from relatives
6% would rely on state benefits
10% admitted that they simply don’t know