Over two-thirds of the population admit to being under prepared when it comes to future financial protection, a survey by AXA suggests. Most people are uninsured should they face long-term illness, death or loss of income, with almost half the population admitting to having purchased no form of insurance.
Only one in three believe they have the financial provisions in place to cover their mortgage, should the worst happen with almost half having less than £1000 in current savings and investments, leaving them at risk of serious financial shortfalls.
The research also shows people are less likely to take out protection products such as life insurance (just 7%), critical illness (5%) and income protection (10%) when left to their own devices, with only a minority understanding what products like these actually cover you for.
Graham Harvey at AXA says: "it is alarming to see such under-provision and lack of understanding. We need to think about how to find better ways to promote the benefits of these products to consumers."
Other findings include:
Only one in three have personally purchased life insurance
Just 16% personally purchased critical illness cover
Through their employer, 17% receive life insurance and 7% critical illness cover
Critical illness insurance: News update: 03/04/2009