British families stand accused of putting luxuries ahead of their life, after a survey finds that more people would rather spend money on laptop cover than life insurance.
Brits are laid back when it comes to making financial provision for their loved ones, according to research from Confused.com.
A third - 34 per cent - of people surveyed said covering their possessions was more important than covering their lives.
And 20 per cent said they prioritised an annual holiday over life insurance, while 11 per cent admitted they thought laptop cover was more important than life cover.
Reasons for lack of cover
Life insurance pays out to your family in the event of your death. But half of adults surveyed do not have a life policy in place.
More worryingly, of those without cover, 29 per cent have children and 52 per cent are married, meaning loved ones would be left financially disadvantaged should the worst happen.
Of course, as many British households continue to feel the pinch, it is perhaps understandable that a third – 34 per cent – of those surveyed cited lack of money as the reason for not having life insurance.
But with 16 per cent admitting to buying lunch every day, and almost 9 per cent shelling out for a daily takeaway coffee or tea, the research suggests more people are living for the moment, rather than planning ahead.
Lack of money or lack of priority?
It’s not affordability but our priorities that should be questioned, says Matthew Lloyd, head of life insurance at Confused.com.
He says: “An average life insurance policy is roughly 73p a day, which is loose change in many people’s pockets. However 34 per cent of people say they can’t afford it.
“It’s worrying that people are blaming cost for not having any life insurance when they spend so much money on other things, which are arguably less important than future planning for their loved ones.”
“With over 50 per cent of people not having life insurance and 56 per cent of their partners not having life insurance this shows a worrying future for people’s loved ones.
Family finances
“The benefit of life insurance is peace of mind – knowing your family will be looked after financially.”
Of course, insurance is one of those products where, unless you need to make a claim, can seem like you’re spending money and getting nothing in return.
But it’s when you do need to claim that it proves its worth.
Despite this, research by insurance group Aviva found that only 3 per cent of families were planning to buy life cover in 2012.
‘What ifs’
Louise Colley at Aviva, says: “Too many people assume that someone else will step in and look after their families if they weren't there to provide for them, but the reality is very different.
"People need to ask themselves just how they would pay for their accommodation, their food, and all the other costs of living, should they suddenly lose an income.
“While no-one likes to think about ‘what ifs', by not even considering these scenarios, people could be putting the future financial security of their families at unnecessary risk.”
What do you think?
Are Brits living beyond their means and prioritising luxuries over life cover? Do you live for the moment or plan for the future?
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