Only 35 per cent of people have life insurance cover despite six in ten households agreeing it would benefit their family
- 63 per cent of people do not hold a life insurance policy, often thinking cover is too expensive
- But 71 per cent pay for a monthly subscription service – twice as many as buy life cover
- The main reason households buy life cover is to provide a lump sum for their funeral and other costs that may arise in the event of death (33 per cent)
- Most people (75 per cent) have savings in place were the worst to happen, however, 32 per cent of people reported they have stopped adding to their savings due to rising costs.
While 60 per cent of people agree that life insurance would benefit their family if the worst were to happen, only 35 per cent hold a policy, according to new research from Direct Line Life Insurance. The findings reveal a substantial gap between households that think life insurance is important and those that purchase cover.
Of those that do not hold a life insurance policy, over a third (35 per cent) believe that policies are too expensive. However, more than two-fifths (42 per cent) of households admitted not knowing how much life insurance costs. While factors such as age, lifestyle and cover chosen will affect the price, many households seem unaware that life insurance policies can start from £5 a month.
However, people can find the money for entertainment services, with most households surveyed paying for at least one monthly subscription service (71 per cent), such as Amazon Prime, Spotify or Apple Music and are willing to spend on average £25 a month.
Of those who own a life insurance policy (35 per cent), some of the main reasons for taking one out include wanting to provide cover for any funeral and other costs that may arise (33 per cent), making sure loved ones are financially looked after (32 per cent) and to help pay off a mortgage or other debts (28per cent).
Vincent Guadagnino, Communications Manager at Direct Line Life Insurance, commented: “It is encouraging that most households see the benefit of holding a life insurance policy, but it is surprising how only 35% of people have taken one out. Our research suggests people expect it to be too expensive without even looking at the potential cost. Despite the cost-of-living crisis limiting household expenditure, many people are unaware that basic life insurance policies can be cheaper than many streaming services, magazine subscriptions or gym memberships.”
“While we may avoid speaking about it, life insurance is there to give your family vital financial support if you died or were diagnosed with a terminal illness – whether that’s covering mortgages, funeral costs or other debts. It is sensible to think ahead and plan accordingly to make sure loved ones are cared for, so we encourage people to investigate a life insurance policy not just for the sake of financial peace of mind, but also to make a smart choice when evaluating personal finances and discretionary spends.”
Notes to Editor
For further information please contact:
Head of News and Issues – Direct Line
Email: [email protected]
Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.
Direct Line life insurance policies are underwritten by AIG, part of the American International Group UK Limited, registered office: The AIG Building, 58 Fenchurch Street, London EC3M 4AB. American International Group UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN number 781109. You can check the FCA register at www.fca.org.uk/register or call the FCA on 0800 111 6768.
Customers can find out more about Direct Line products or get a quote by calling 0800 077 8297 or visiting www.directline.com/life-cover.