- New research from life insurance experts at Confused.com finds that UK couples are unprepared for the future, with over half without life savings (52%), a will (57%), or a life insurance policy (66%)1.
- A fifth of couples (18%) have yet to complete any long-term plans with their partners.
- To help couples who may not know where to start, Tom Vaughan, life insurance expert at Confused.com, has put together a list of important tasks to get them on the right track, from setting shared financial goals to arranging life insurance policies.
Planning for the future is one of the most important tasks for couples to do, creating goals to work towards, protecting your family, and securing peace of mind for both parties. However, when it comes to this, not everyone is prepared. As it turns out, almost a fifth (18%) of UK couples have not completed any long-term plans with their partner, such as building up life savings and arranging a life insurance policy.
That’s according to new research from Confused.com life insurance, which aimed to discover the future-planning tasks couples haven’t completed yet.
Around two-thirds (60%) of UK adults are either living with a legal partner or cohabiting, according to ONS data2. Meaning that around 42 million Brits have taken the next steps in their relationships.
Around half (52%) of UK couples have yet to build up life savings, whilst over half (57%) haven’t arranged a will. More concerningly, two-thirds (66%) have yet to arrange a life insurance policy, signalling a large number of UK couples who haven’t fully secured their family’s future. Because of this, Confused.com has put together a checklist for couples to use to make sure that they’re fully prepared for later life, from setting financial goals to preparing legal documents.
Tom Vaughan, life insurance expert at Confused.com, shares his advice on the important tasks to get you on the right track, from setting shared financial goals to arranging life insurance policies:
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Set shared financial goals
“One of the most important aspects of preparing for a future together is to be properly aligned on finances and financial targets. Regular communication is essential, setting both long-term and short-term goals so you know what you’re both working towards, from buying your first house to planning for retirement. Agree on what your priorities are and when you’d like to achieve them by, giving you a timeline to work from and helping to visualise your end goal.
“To help achieve your targets, it’s also important to fully understand each other’s current financial picture. This involves sharing information such as income, assets, debts, and credit scores so that there are no surprises later on, whilst also knowing what your financial foundations are.”
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Protect against risk
“Ensuring that both parties have all the necessary protections and insurance in place is another vitally important task to prepare for the future, accounting for various scenarios to make sure you’re covered. Products such as home, renters, and car insurance are things that you should both have and regularly update and need to reflect any changes to your situation in order to give the most protection.
“Life insurance is another such product, providing you and your partner with peace of mind that you’ll be financially secure later in life. Some policies also offer critical illness cover, adding an additional layer of protection if you lose income due to specific, serious medical conditions.”
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Prepare and update legal documents
“As well as protecting yourselves and your futures through insurance, you’ll also want to do the same through legal documentation. The most well-known document of this type is a will, which is vital to either prepare or update when securing your family’s future. You’ll also need to make sure that your beneficiaries are named on your wills as well as your life insurance policies, ensuring that your money and assets are going to the right places and people. It may also be a good idea to set up plans for if one of you is left unable to make important decisions related to finances or wealth, such as a living will or lasting power of attorney, so you’re fully prepared for every circumstance.”
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Continue to reivew
“Planning for the future is far from being a job only done once, instead requiring regular reviews and reworks as your situation changes. Set aside time together to go over your finances every few months, seeing how your incomings and outgoings may have changed and how you’re progressing towards your goals. Be sure to amend your plans and update documents after any kind of major life change, from moving to starting a new job, so everything is reflective of your current situation. Make a habit of keeping on top of things to not only make your life easier but also to leave you as protected as possible.”
For more information on life insurance policies, please visit: https://www.confused.com/life-insurance
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