New statistics released by the leading insurers in the UK showed that insurers pay out the nearly £9 million in life, critical illness and income protection insurance every day. Shockingly it also said less than 1 in 4 households have life insurance in place. A recent survey done by insurers revealed some insights as to why such a small percentage of people take out life protection and those are as follows:
- Is it because people think that the cost of cover is more expensive than it is?
- Is it because people think the cover is a waste of time, money and is unlikely to pay out in the event of making a claim?
- Is it because people think they will have to go through a lot of paperwork and the process is burdensome and time-consuming?
People’s Perception vs. Reality
- Claims paid: 57% of respondents believe that less than 90% of life claims are paid and 22% think that less than 70% are paid whereas the reality is 98% of life insurance claims are paid every year.
- Cost of cover: 38% of respondents believe the cost of £100,000 cover would be 300% – 600% more than the actual cost and another 23.7% believe the cover would cost £20 – £30 a month. On the other hand, the reality is a monthly premium for a 40-year old (non-smoker) who wants £100,000 of life cover over 25 years would only cost £10 per month
According to the research by the UK insurer:
- 92% of Critical Illness claims were paid
- 14,401 Critical Illness claims were paid
- The average Critical Illness payment was over £67,039
- A total of £965 million was paid in Critical Illness payments
- The primary reasons for claims were cancer, heart attack, stroke and multiple sclerosis.
The thought of leaving loved ones in a financial mess should you die unexpectedly is what usually makes people arrange this essential form of cover. Life insurance is not suitable for everyone unless you have enough savings or assets which can be used to pay off debts or replace an income for as long as children are dependent, you should consider taking out life insurance.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00