A new survey has revealed that a staggering 56% of the UK population don’t own any kind of life insurance policy. The figures come in spite of 97% admitting they know what life insurance is and how important it can be.
The statistics from Scottish Widows also show that just 12% of the population have taken out critical illness cover, while just 7% have taken out income protection insurance. Lack of finances was found to be the biggest reason for people failing to take up a policy, with 23% saying they didn’t have the money to take out a life insurance policy and 26% saying the cost stopped them from acquiring critical illness cover.
“Our research shows that the majority of people clearly understand the benefits associated with protection products such as life, critical illness and income protection, but that many still don’t adequately protect themselves, their families and their homes,” commented Scottish Widows’ Clive Allison.
“The industry still needs to do more to highlight these benefits to ensure take-up increases, especially in an environment where welfare provision is being eroded, and the Government is promoting the need for greater self-reliance.”
The third Scottish Widows Consumer Protection Report also showed that the majority of the respondents rated materialistic items such as broadband (65%) and mobile phones (55%) as more important than their life insurance policy. In comparison, just 35% of those asked said making sure they were financially secure if they could not work was their number 1 priority.
“It is extremely worrying that so many of us haven’t protected the things most dear to us – our families, our homes and our incomes which enable us to lead the lifestyles we do. Yet we feel that we cannot live without material items such as the internet or Sky TV,” added Mr Allison.
The figures from Scottish Widows also highlight the lack of money currently being saved by UK consumers. While 43% of consumers said they would rely on their savings if they or their partner lost their job, 58% admitted they had less than £2,500 in their savings account or had no savings at all.