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Blog: Why do a third of UK families lack life insurance?

life, insurance, life insuranceHow much are you worth? It seems many people don't value themselves at all as around a third of Brits with families lack life insurance.

Starting a family is a big trigger for buying life insurance.

Why? Well, it might seem morbid but it's a time when parents realise their worth.

Mums and dads-to-be start thinking about how their families would cope with a loss of income if the worst were to happen.

33% of families lack life cover

So how come of the 26.4 million households in the UK in 2012 only 5.8 million have life insurance, according to the Association of British Insurers.

In a bid to answer this question I turned to my colleagues as a snapshot of society.

The good news is that my straw poll of employees with families found that 67 per cent have life insurance - but this means that 33 per cent don't.

Reasons for not having life insurance

The main reason given for not having cover was the expense.

One respondent says: "I used to have it but when I changed my mortgage I couldn't afford both but I'd very much like to have it again as I feel I should protect my wife and child."

So it seems some parents' protective instincts are being blocked by their budget.

But Matt Lloyd, head of life insurance at, says people shouldn't think life insurance is a luxury out of their price range.

He says: "It's encouraging to see that a large percentage of staff with families have wisely opted to take out life insurance.

"However, what's interesting to see is that there's still a perception that life insurance is too expensive.

"In reality, life insurance can be very reasonable, with some premiums equating to as little as £1.10 a week."

New Year budgeting

So why all this talk of life, death and finances? Well, Christmas is a time for spending but the New Year is a time for budgeting.

The typical British family could survive financially for just 18 days if it lost its normal sources of income and had to live on savings.

This is according to research by life insurance provider Legal & General, outlined in its annual Deadline to the Breadline report.

Lloyd adds: "While budgets may be tight, I would encourage those without a policy to look into life insurance.

"By taking out cover you can rest easy knowing that your loved ones will be financially protected if you die."

What do you think?

Do you have a family? Do you have life insurance? Tell us why you do or don't have life cover.

We want to hear from you! You can share your views on the message board below.

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Alex Cinus

Alex Cinus

Alex Cinus is a reporter at He started out writing for newspapers in Monmouthshire and Newport before moving to Italy to teach English. After four years in Sardinia he joined the team at

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