Public overestimates life insurance costs by 400%
16/06/2015
The British public overestimates the cost of life insurance by almost 400%, according to research from SunLife.
On average, the public thinks £100,000 of life cover would cost £50.58 a month, when the average premium actually stands at £10.31. The research also found that 47% of people have no idea how much life insurance would cost, rising to 53% for those who cited affordability as the reason why they have no cover.
Over a quarter of people who don’t have life cover are concerned by this, as their family would lose all or most of its monthly income if they were to become critically ill or die. 8% of people did not know what the financial implications of not having life insurance would be.
Even amongst those who do have life insurance, only 39% of people are certain they have enough cover. One in 10 (11%) say they know they are underinsured while 15% say they don’t know how much cover they have in place.
Dean Lamble, managing director at SunLife, commented:
“Our research shows people are not protecting themselves with life cover because they think it is much more expensive than it is; this misconception needs to be addressed. As an industry, we have an important role to play – we need to make life insurance more accessible so that more people realise they can afford it.
“It is worrying that there are many families out there that either have no life cover or insufficient cover in place simply because they are overestimating how much it costs.
“More than a quarter of those who don’t have life insurance say they are concerned about the fact they are not covered; we need to help these people get cover they can understand and afford so that, should the worst happen, they know their families are protected.”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Three-quarters of a million Brits commit travel insurance fraud
As many as three-quarters of a million Brits are making false travel insurance claims, with many failing to realise that they are committing fraud by doing so, according to research from Direct Line Travel Insurance.Research found that many travellers exaggerate or falsify their claims - 11 per cent confessed to increasing the value of their claim and five per cent admitted they added extra items....
Read MoreTree subsidence danger highlighted
Homeowners are being warned about the potential subsidence dangers caused by planting trees too close to their homes.According to Halifax Home Insurance, planting trees too close to homes accounts for the majority of subsidence claims dealt with by insurers.In extreme cases, subsidence can cause major structural damage to homes, however paying special attention to the trees and vegetation around a...
Read MoreLloyds bank agrees to stop PPI sales
Lloyds bank has today agreed to withdraw PPI, payment protection insurance, from the list of services provided by the group. Earlier this year we saw the regulators suggesting that the way in which PPI is sold to the general public should change in the future. A cooling off period and a more detailed analysis of the total cost of PPI, together with discussions regarding the fact that many consumer...
Read MoreNationwide warns consumers over garden contents insurance
A study by Nationwide has highlighted the need for homeowners to ensure their garden contents are comprehensively insured. A poll conducted by Nationwide found that one-third of respondents estimate that the contents of their garden - including garden furniture and lawnmowers - is between £250 and £1,000. Robin Bailey, insurance director at the firm, said that the high value of such goods means...
Read MoreFlood warning made by Zurich
Two-thirds of Britons are not prepared for their home being affected by floods, Zurich has found.New research from the home insurance provider shows that 44 per cent would also not know whether or not their insurance policy covers them for extreme weather.Zurich also said that 62 per cent of people feel that they are at increasing risk of their home being flooded, due to climate change.The researc...
Read More