Brits unprepared for death and cutting back on protection
Shocking new figures have revealed that nearly a third of all British people are uninsured against life changing events such as death, critical illness and redundancy, and a whopping 8% have stopped, or cut back on their life insurance over the past 12 months because of financial pressures.
The true cost of the recession is finally starting to tell as people consider stopping vitally important insurance policies, something that may leave them a few pounds a month better off in the short term but could leave their families hundreds of thousands of pounds short if the worst happens somewhere down the line.
A survey carried out by unbiased.com revealed the chocking findings as more and more people put their financial security, and the financial security of the families at risk by cutting out the policies they could so desperately need.
CEO of the website, Karen Barrett explained, “Consumers looking to tighten their purse strings are now adding insurance policies to the ‘cancellation list’, choosing to let go of their financial security in favour of some extra cash in their pockets. The ‘it won’t happen to me’ attitude seems to be at the forefront of people’s minds as they fail to realise what this may cost them in the future.”
She also made it aware that it’s important to make sure you look out for your own future, as others won’t, adding, “We need to raise awareness amongst consumers that the state is no longer prepared to intervene in the event of ill-health or redundancy; it is up to each of us to take on this financial responsibility.”
The results of the survey suggest that some 15 million adults in the UK could find themselves in financial trouble if they lost their jobs, yet 15% said they couldn’t afford income protection cover, and another 15% revealed they didn’t think that income protection was a necessary investment.
Life insurance certainly is a necessary investment and you should never cancel or cut back on your cover as you never know what’s just around the corner. With cover currently as cheap as it’s ever been don’t let life insurance find its way on to your cancellation list and make sure you keep yourself covered.