Over half of the UK adult population has no life insurance

New research shows that an estimated 28 million of the UK population do not have any life insurance in place.

Research carried out on 5,148 UK Adults, shows that many are continuing to shun protection products including life insurance, critical illness cover and income protection.

Although over half of the UK population (54%) admit to reviewing their finances once or twice a year and awareness of protection is high, the reality is that the take up of these products remains exceptionally low.

From those surveyed, 97% were aware of life insurance and the importance of having it, however only 44% had cover. Similarly, when it comes to critical illness cover the awareness remains high (86%).

However the percent of respondents who have actually taken out a product is worryingly low at just 12%. The same goes for income protection insurance where the awareness is 83%, with take up at just 7%.

The research also shows that almost a quarter of the UK population (23%) say they believe they cannot afford life insurance and when it comes to critical illness cover 26% state this as their primary barrier to not taking it out.

A worrying trend, is that many material goods (e.g. internet broadband) are seen as ‘essential', whereas insuring income in case of illness is seen as a ‘luxury'.

69% of respondents said their broadband was essential to their day to day living and 55% stated their mobile phone. In contrast just 35% said ensuring their financial security if they were unable to work was essential.

Just 15% of respondents said they would consider cutting back on broadband internet access, whilst a fifth said they would be prepared to cut back on critical illness and life insurance.

Many people do not like to plan for the unknown, however the importance of doing so cannot be underestimated.

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.

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If you are concerned about this and want to do something about it , feel free to get in touch at mark@themortgagemonkey.co.uk