New research from Nationwide suggests parents are more likely to insure their car than their health or salary. More families have cover in place for their property and possessions than they do to protect themselves and their families.
Illness and death are inescapable facts of life. There are more than 293,000 new cases of cancer diagnosed each year, and more than a third of us will develop some form of cancer during our lifetimes. Despite this, half do not have life insurance cover. Three quarters do not have any critical illness. People are not adequately covered against unemployment, with only 17% holding income protection cover.
Guy Simmonds of Nationwide says, "Possessions such as mobile phones and cars are far from indispensable, but to your family you are irreplaceable. How would they cope if you were no longer here, or unable to support them financially because of an illness, disability or unemployment? You cannot be replaced, but you can make plans to replace the income that you would otherwise have provided for your family.”
Life insurance pays out a lump sum if you die, while critical illness cover pays out if you are diagnosed with a terminal or critical illness. Income protection can provide a safety net if you are unable to work due to illness or accidental injury. It can pay out a tax-free benefit until they are well enough to return to work, or until the chosen retirement age.