A report released in the last week by Aviva Family Finances has found that, whilst 50% of families are happy to pay for a satellite television package, just 40% have life insurance. This comparison is at once fascinating and troubling.
It is understandable that the majority of UK families find it difficult to discuss personal finance matters and their own mortality and so avoid the issue of dealing with what would happen if the main income earner was no longer able to earn.
As a result, many families ignore the issue and fail to appreciate the value of protecting their family, compared to spending on other items.
It seems that families are more likely to have insurance for their mobile phone than insurance that will protect their family financially if they were to suffer a critical illness. Equally, more people have taken out an extended warranty on electrical items 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.
With inflation, pay freezes and benefit cuts hitting families, most are trying to save money this year as well as pay off their debts. However, many misunderstand the value of protecting their families financially. More see booking a summer holiday as a higher priority than buying life insurance.
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 weren’t 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.
While no-one likes to think about ‘what ifs’, by not even considering these scenarios, people could be putting the future financial security of their families at unnecessary risk.
Many customers report feeling ‘peace of mind’ when they take out life cover, knowing their affairs are in order, so families are urged to overcome their taboos and consider whether they need to put protection in place.
With household budgets stretched, one of the first things cut by many is insurance. Some insurance, such as buildings or car insurance is essential. Others range from highly desirable to perhaps just desirable or nice to have.
Life insurance fits in the highly desirable category. It will give you peace of mind and provide for your family if you are suddenly and unexpectedly unable to do so.
