Families are putting luxuries ahead of protecting their loved ones financially, the latest Aviva Family Finances Report reveals.
The report discovered that while 50% of families are happy to pay for a satellite television package, just 40% have life insurance.
Families are more likely to have insurance for their mobile phone (14%) than insurance that will protect their family financially if they were to suffer a critical illness (13%).
More people have taken out an extended warranty on electrical items (13%) than have income protection insurance, which would potentially pay an income for life should they be unable to work as a result of an accident or illness (10%).
The report also reveals the majority of families are avoiding the issue of what they would do if something happened to an income earner, because they find discussing their finances and mortality uncomfortable. This is in spite of the financial worries that could be caused by not having protection, exacerbating emotional distress at a difficult time.
Louise Colley of Aviva says: "No-one likes to dwell on poor health or mortality, but by denying that illness or worse is even a possibility, people are stopping themselves putting measures in place to protect their loved ones. Too many people assume that someone else will step in and look after their families if they are not there to provide for them, but the reality is very different. People need to ask themselves just how they would pay for their accommodation, their food, and all the other costs of living, should they suddenly lose an income."