When considering insurance needs, it’s important not to forget life cover. A loss of life can bring financial hardship to those left behind. They may be burdened with debts, have difficulties meeting everyday living costs and be left with no funds to pay for home repairs and other larger expenses. A Government survey [2] discovered that 28% of all UK households have no savings at all and a further 18% have less than £1,500. How would one of these families cope financially after the death of their main breadwinner?
Experts have predicted that, in 2009, UK families were underinsured by a massive £2.3 trillion (that’s £2,300,000,000,000) [3]. This has been called the ‘protection gap’ and is a shocking amount, particularly as life cover is readily available and can be very affordable. It’s relatively easy to check online for the cost of cover and the various options available. Lots of factors influence the cost, including how much cover is needed, the cover term, age (premiums are lower for younger ages) and personal circumstances (for example, health, occupation, pastimes and overseas travel).
