The Corona Virus pandemic has prompted an additional 5.8 million UK adults to purchase or renew their life insurance policies, according to leading provider, Canada Life. This staggering figure represents nearly 11% of the UK. It is clear that this terrible disease has led many of us to consider our mortality and what our loved ones would be left should the worst happen. The report also highlights that many of these new policies have been purchased by 18–34-year-olds, a demographic that has historically been more reluctant to subscribe to such insurances.
However, Canada Life’s Sales Director, Dan Crook, highlighted the number of people in the UK without such policies is a serious concern. Dan commented “As an industry we must do all we can to highlight the importance of protection and the peace of mind it provides, both financially and emotionally, before it is too late”. Overall, it is suggested that nearly 63 percent of people in the UK still do not have significant life cover (FTAdviser). The fear generated by the pandemic has also led to a vast number of people review their current policy to ensure they have the right level of cover and to look deeper at what is covered with their existing contract.
So why do so few UK adults have a solid level of cover? The answer can be seen in the results of research carried out in January 2021 by MoneySuperMarket. Their research highlighted the core reasons for not taking out life insurance was people perceived such policies as “too expensive” and also that “insurers never pay out”.
However, it was pointed out by the price comparison site that the average monthly cost for £100,000 worth of cover was under £15 per month (depending on age and circumstances) – less than most of us spend on Netflix every month!
In reference to paying out, figures published by The Association of British Insurers and Group Risk Development in May 2021 detailed how the insurance industry in the UK paid out over £6.2bn in life insurance, income protection and critical illness cover in 2020 alone.
Life insurance is a service that is so important for peace of mind and to ensure that should the worst happen your loved ones are taken care of in an extremely distressing time. To learn more about your options to protect your loved ones, call our team today.