40% of adults with dependents are not taking out life insurance according to research from MoneySuperMarket.
The survey, which was conducted in January, found this was due to three main reasons, including:
1. Life cover being too expensive
2. Insurers never pay out
3. It’s too depressing to think about such things
MoneySuperMarket suggested all three of these reasons not to buy life insurance are myths.
For a start, the comparison site highlighted the average cost of life insurance per £100,000 of cover is just £10.96.
That’s roughly a quarter of what the average UK household spends on monthly home entertainment, such as Netflix, Spotify and Amazon Prime.
MoneySuperMarket also debunked the idea that insurers ‘never pay out’ as factually incorrect too.
In fact, figures from the Association of British Insurers show a record 98.3 per cent of protection claims were paid out in 2019.
“Sure but how much do they actually pay out?” We hear the sceptics ask.
The average pay out on a life insurance policy in the UK is £81,268.78. That’s a lot of money.
Another myth surrounding life insurance we often here at BulbFin is the idea that:
“I’ll just pay the money into a savings account”
Now we are the first people to advise that you should be saving your money.
If you start saving right now, it will take most of us years to accumulate the £81,268.78 that represents the average pay out on a UK life insurance policy.
Most life insurance claims are for hundreds of thousands of £££, no matter when you pass away…
This helps cover your mortgage, funeral and whatever else your family will have to pay for.
So if the unthinkable happens, your savings probably won’t be able to cover all of the above.
What the research proves is that the three main reasons not to buy life insurance are based on myths.
Life insurance is an important form of cover.
Feel free to get in touch with BulbFin today to review or attain a suitable life insurance policy.