It has not gone unreported that the economic recession is causing many of us to cut back on spend. Where life insurance is concerned, research published recently has shown that an alarming number of UK adults are now going without any type of life insurance policy - and also sheds some light on what exactly it takes to spur us on to consider cover that is thought of as so important.
According to the survey, only a quarter of UK adults have taken out a policy, whilst just under half of us have invested in a private pension to ensure we are financially independent when we retire. This comes at a time when the average debt of a UK household stands at £58,765 (including mortgages) whilst over 6 percent of the population are unemployed.
With such reports becoming more common, it is strange to see that at a time when financial family planning has never been more important, the benefits of life insurance are often being ignored. This means that in the UK there are a very high number of dependents and individuals at risk of being without financial security after the loss of a parent or spouse. But what of those who do purchase life insurance?
The research also found that of the people who do buy or plan to buy, life cover - there are certain pivotal moments when it becomes regarded as necessary. 14 percent of those asked said they would wait until they had children before paying for
life insurance. Additionally, 10 percent said that they would consider insurance after they had got married.
The trends shown by this research may not seem so surprising, but they are intriguing. At a time when money is tight it is surprising how many of us are overlooking the fact that such policies are cheaper when we are younger. Despite the cost (although cover can be as little as £5 a month), I would've expected such research to show a higher number of people opting for sensible forward-looking financial planning, when in fact we are still approaching life insurance in the same way we did before the credit crunch.
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