Life insurance can be a difficult topic to talk about, but it plays a huge role in planning for both your and your family’s financial future. And, regardless of health problems in the UK, people are still failing to take out life insurance policies.
More than two thirds (57 per cent) of people in the UK either haven’t purchased any sort of life insurance or are completely unsure whether or not they have it (11 per cent), according to LifeSearch’s 2017 Health, Wealth and Happiness report.
This is despite the fact that 14.3 million households in England were found to be owner-occupiers and that life insurance can help to pay off a mortgage in the event of a family death.
Despite understanding the importance of a stable financial structure, adults these days are in no rush to buy life insurance. One explanation for this is their list of priorities and the global financial crisis that has been undermining millennial confidence when it comes to investing. Repeated mis selling scandals of insurance products also erode trust.
The traditional stages of life that once acted as a nudge for previous generations into buying life insurance may not have the same effect with people today. This indifference, therefore, could result in industry failure to engage them with products that have appeal and simple routes to ownership.
Of course, there is no law stating you must have life insurance – unlike other types of insurance such as buildings and car. People also have other pay commitments such as water, electric and gas, which is why many people prioritise these bills over anything else. It’s a natural instinct to focus on what you have to pay instead of what you want to pay.
But, think about this – what if something did happen to you, and on top of that you’re having trouble paying your bills? Your family would have to do deal with this, and how would they get by without your money? A life insurance policy can give your loved ones the peace of mind that they’re going to be financially taken care of should the worst happen to you. It will take the burden of the funeral costings. To make the whole task seem less daunting, you can compare funeral directors for the best price.
You also don’t buy life insurance often, so it doesn’t need reviewing every year. You can upgrade your policy, or purchase it again if you discontinue a policy, but generally, you only buy it once.
Although younger generations such as Millennials would benefit from doing more when it comes to financial planning, insurers wishing to attract them face a challenge and must do more. If people become more aware of how life insurance could benefit them, it may encourage them to act upon it.
If you’re having doubts, think of your family. Are they financially protected? Because if something was to happen to you and they weren’t, their entire life could come crashing down on them.