Life Protection in the UK
Protection in the UK –
Life insurance has become a big talking point over the last year with the Covid-19 Pandemic causing many to think more about the fact that the unthinkable can happen and very unexpectedly at that.
The UK appears to now be past the ‘second wave’ that came over the country but many are still largely affected by the 127 thousand deaths that have occurred domestically due to Covid-19.
As such, many have begun to think more about what would happen in the unfortunate event that something was to happen to them and how those left behind would be affected.
According to the UK’s largest insurer, Aviva, only 3 in 10 adults in the UK have any form of protection policy, while 1 in 8 have no cash savings to their name and 43% find it hard to make their income last payday to payday.
These figures show that a large percentage of the population is likely to face a very difficult time in the event of serious illness or death within their family.
Statistics conducted by financial services provider OneFamily state that 13% of over-50s believe they would struggle to afford the expense of life insurance. However, data provided by Forbes suggest that there are major misconceptions about the cost of insurance, while Aviva offers plans starting from just £5 a month.
How does this relate to Mortgages?
The value of protection is clear to see concerning the mortgage side of things which is why it has become very common for those taking out a mortgage to also take out a policy that covers them for the entire mortgage term.
For instance, in the unfortunate event of death, mortgage payments must still be paid for a home to remain in the hands of the inheritors, something many do not plan for.
Further, according to Aviva, nearly ½ of UK households would struggle financially if the main earner was unable to work for 6 months due to illness or disability- after all, your outgoings wouldn’t stop if your income did.
The added ‘cost’ of a policy ensures that your home remains your home.
What can you do?
When deciding what type of protection you need, it is important to consider how you and your loved ones would be affected due to you being unable to work, developing a critical illness, or passing away.
Our advisers can use this information to recommend you an appropriate cover with our chosen provider, Aviva, building you your own ‘shield of protection’.
Unfortunately, although Covid-19 is responsible for many now seeking out life insurance, the unknown nature of the illness, especially its long terms effects, means it is not covered on many insurers’ terms including Aviva.
Nonetheless, the range Aviva does cover is immense. They are the UK’s largest insurer and in 2019 paid out 98.6% of life insurance claims, helping 16,000 families, with payouts totalling £582 million.
Further, by taking out a policy with Aviva you receive access to Aviva Digicare+ that provides free access to mental health support, Bupa Anytime Healthline, an annual health check, nutritional support, gym discounts, and more.
If you are looking to take out a mortgage, already have a mortgage, or are just looking for personal protection, we can help set you up an appropriate cover plan for you.
Survey Shows Plans To Buy Life Insurance But False Perceptions Of High Cost – Forbes Advisor
Only a third of over 50s had life insurance in the past year (actuarialpost.co.uk)
GitHub – CSSEGISandData/COVID-19: Novel Coronavirus (COVID-19) Cases, provided by JHU CSSE