How many people have life insurance in the UK?
It is estimated that around 30% of people in the UK have life insurance, equal to around 20 million people, 8 million households and 1.1 million mortgaged properties. Life insurance [/] is designed to pay out a lump sum to your family if you tragically die and are unable to continue supporting them financially. Your life insurance policy is designed to cover up to 5 or 10 times your annual salary and provide a financial safety net for your family to pay for things like mortgages, childcare, sc
Yugi the Giraffe - 3 June 2019
It is estimated that around 30% of people in the UK have life insurance, equal to around 20 million people, 8 million households and 1.1 million mortgaged properties.
Life insurance is designed to pay out a lump sum to your family if you tragically die and are unable to continue supporting them financially.
Your life insurance policy is designed to cover up to 5 or 10 times your annual salary and provide a financial safety net for your family to pay for things like mortgages, childcare, school fees and ongoing household and utility costs.
How many people do not have life insurance?
Statistics from finder show that around 8.5 million people, over the age of 18, do not have any life insurance in place at the moment.
This included around 19% of people that previously had life insurance, but no longer do.
For very young people who are single, no mortgage and no children, they may not see the value of having life insurance because they have little income or other people to support financially.
However, for those people with a mortgage, dependents and financial responsibilities, having life insurance can be essential to offer continued financial support to your loved ones.
Do I need life insurance?
Life insurance is not compulsory by law, but can be an absolute essential if the worst happens, you are the breadwinner of the household or financially responsible for other members of your family.
For young people under 30, life insurance starts from around £6 to £11 per month (assuming non-smokers) and this can be a low cost way to prepare for the unexpected.
Certainly when you have a mortgage payment and are living with other people, your life insurance cover can pay for any ongoing mortgage payments and not leave the responsibility on someone else.
From an employer’s perspective, many are adopting group life insurance policies to cover their staff. By investing in the health and financial responsibilities of your staff, it has been shown to increase employee retention and loyalty towards the organisation.
What happens if I do not have life insurance?
Your life insurance is designed to cover a multiple of your salary so that your family can continue living a similar quality of life and do not suffer financial difficulty.
If you do not have life insurance but have financial responsibilities such as a partner, children and a mortgage – you potentially risk leaving your family with a number of ongoing living costs which may not be affordable.
This includes covering:
• Mortgage payments• Household bills• Utility bills• Childcare expenses• School fees and uniforms• Holidays• Car payments
If you have a mortgage, there is the risk that your loss of life and income will not be able to maintain ongoing payments. This could require your spouse to fit the entire bill or risk losing the property to find something more affordable.
What are the different types of life insurance you can apply for?
Decreasing term insurance
This type of cover decreases over time, so it is useful when you in your 30s, 40s and 50s to pay for your mortgage and your children’s expenses. But once you are older and have paid off your mortgage and your children have flown the nest, you are paying much smaller monthly payments.
Level term insurance
This allows your purchase cover offer a fixed term e.g 10 or 20 years. It is often quite affordable because depending on your age, you may not realistically die in this time. However, it could cover you for the cheapest or more expensive times of your life, which can be convenient.
Whole of life insurance
Whole of life cover is designed to cover the whole of your life and is typically more expensive because the insurer knows that you will pass away at some point, even if it is 50 years ahead.
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Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.