Pandemic prompts 5.8 million to think about life insurance – why you need to protect yourself now

Over the last year and a half, stories of people who have lost their lives to Covid-19 have been a daily feature of the news. You may even know someone who has sadly passed away over the last 18 months.

So, if the pandemic has led you to think about putting life insurance in place, you’re not alone.

New research from one of the leading insurers in the UK has found that the events of the last year have prompted millions of adults to buy – or think about buying – life insurance.

Having the right life insurance give you the peace of mind that your loved ones will be supported when you’re no longer around. It ensures they receive a lump sum at a stressful and emotional time, helping them to maintain their standard of living.

Read on to find out why more people are thinking of taking out life insurance, and why putting the right protection in place can bring huge benefits.

 

Pandemic prompts 5.8 million Brits to think about life insurance

According to a new study by Canada Life, published in FT Adviser, the pandemic has prompted 5.8 million Brits to buy, or consider buying, life insurance. That is equivalent to around 11% of the population.

The leading insurer also found that a fifth of these people were between the ages of 18 and 34.

Overall, an estimated 37% of the UK’s adult population – around 19.5 million people – has bought or thought about buying life insurance to date. 

While this is clearly positive news, the insurer warns that there is still "a significant proportion of the population" that don’t have any cover in place. Almost two-thirds of adults – almost 33 million people – do not therefore have an active life insurance policy in place.

Canada Life’s protection sales director, Dan Crook, said the share of people without life insurance was still “concerning”, adding: “As an industry we must do all we can to highlight the importance of protection and the peace of mind it provides, both financially and emotionally, before it’s too late.”

 

Why should you take out life insurance?

The best way to consider the benefits of life insurance is to think about what would happen to your loved ones if you were no longer around.

Firstly, they would lose the income you bring – whether that’s your salary, pension, or profits from your business.

Secondly, they would be left to meet all your monthly commitments, from your mortgage or rent to utility bills, travel costs, food, and other essentials. Could they maintain their standard of living without the money you earn?

Thirdly, they would potentially be left with significant debts. This might include a mortgage, as well as car loans, credit cards, or other unsecured debts. Would your family be able to pay these off?

If any of these questions raise concerns, then it’s time to think about putting the right life insurance in place. It’s particularly vital in certain circumstances – for example, if you have children or a mortgage – so check whether you’re one of the five types of people who really need life insurance in our guide.

 

Three “widespread myths” about life insurance and why you shouldn’t believe them

As life insurance experts, we hear several common objections from people who don’t take out life insurance.

Research published in FT Adviser backs up our experiences. This suggests homeowners with dependents were not taking out life insurance due to “widespread myths” about cover. 

It’s too expensive

Study after study has found that people routinely overestimate the cost of life insurance. 

In a recent Legal & General study, respondents guessed that it would cost £23 per month to provide £100,000 worth of life cover, over 30 years, for a 30-year-old non-smoker.

The actual price of cover? Less than £8 per month. 

Nine in ten people thought the cost of insurance was more than it was.

FT Adviser say that the average monthly cost of life insurance per £100,000 of cover is just £10.96. So, if you have put off taking out cover because you think it’s expensive, it’s time to think again.

It only takes a couple of minutes to get an online life insurance quote on our website. Enter your details now and we’ll search dozens of insurers to find the best price for you – it’s likely to cost less than you think.

We’ve also previously shared 10 ways to cut the cost of your life insurance – there are some great tips in there to help you to save money.

It won’t pay out

This is one of the most common – and one of the least accurate – things we hear about life insurance. 

Many people believe that insurers don’t like paying out, and they will do whatever they can to avoid settling a claim.

This is simply untrue. We recently looked at official figures which show that 97% of life insurance, and 99.99% of “whole of life” insurance policies paid out in 2020. That’s equivalent to more than £4 billion in payouts to grieving families, with the average payout on a standard life insurance policy being more than £79,000.

I don’t need it

If you’re young, you don’t have children, or you rent your home you may simply think: why do I need life insurance?

Go back to the questions we asked above. If you live with a partner, it’s likely that you share the costs of living. Could you partner continue to pay those bills if you (and your income) were no longer around?

You may also have personal experience of loss. According to Legal & General, almost eight in ten millennials have lost a loved one, around half have known a close acquaintance who passed away, and nearly one in five has lost a peer of a similar age who didn’t have life insurance.

If you have any financial commitment, anyone who is dependent on you, or if you simply want the peace of mind that your loved ones will be financially secure on your death, investing a few pounds a month in life insurance should be something to consider.

 

We can find the life insurance you need

If you’re one of the millions of people who have been prompted to think about life insurance, we can help.

We specialise in life insurance, and we work with dozens of the UK’s leading insurers, including household names such as Aviva, Royal London, LV=, Legal & General, and Aegon.

We can scour the market for you and find the best price for the cover you need. We can guide you through the application process, and even help you to put your life insurance in trust.

• Our service is fast, free, and secure
• Easily compare cheap life insurance quotes
• We can help you if you have pre-existing medical conditions and you’re concerned you won’t get cover
• We also specialise in helping customers from the Isle of Man, Jersey, Guernsey, and Gibraltar
• We take lower than standard commission, so you save money on the cost of cover.

Getting a low-cost life insurance quote is easy. Simply complete our online form and we’ll compare the cost of cover for you. If you’d rather speak to one of our life insurance experts, contact us now and we’ll be happy to assist.