A recent survey conducted by insurer Scottish Widows revealed that 28 million adult Britons don’t have any life insurance cover. This exposes a sizable population to financial uncertainties in the event of death of the breadwinners.
The third Consumer Protection Report released by Scottish Widows found that many people avoid financial safety nets such as life insurance and critical illness cover to save on expenses. Ironically, the report found that although there was a high level of awareness among the masses about the benefits, still it did not translate into insurance purchase.
A staggering 97% of the population surveyed knew the benefits of life insurance. However, only 44% of people actually took out a policy.
For critical illnesses, 86% of the people knew of the advantages while a mere 12% bought a CI cover product.
Clive Allison – Director of Protection Market at Scottish Widows said the industry should pro-actively promote the benefits of life insurance and critical illness cover products. He also warned against the heavy unforeseen expenses people may have to suffer due to lack of CI cover.
The Scottish Widows report backs Nationwide’s April survey which found that people bought more insurance for properties and other assets than life covers.