Figures from UK Life Insurance show that over a third of over-55s don’t have a life insurance policy, while only 17% of Generation Z and 5% of millennials remain uncovered. Far more men than women hold the insurance, the study also showed.
A spokesperson for the firm said: “We don’t do a good enough job in educating people about life insurance, what it is, what it is used for, its benefits and its role in estate planning and retirement.
“Life insurance can be very affordable for most people and can give families real peace of mind to protect their loved ones financially if the worst were to happen.”
Misconceptions abound
The study also showed that many of us don’t understand the requirements around the insurance. Nearly a third of Brits think you need a life insurance policy in place to be accepted for a mortgage, with that percentage rising to 40% for millennials.
This is not the case, however, although some lenders do stipulate that you have insurance so that a mortgage is covered in the event of death.
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The self-employed are more likely to have life insurance than the rest of the population. Of the self-employed, sole traders, or business owners polled, only 57% said they had life insurance versus 45% of the rest of the population.
A gender gap
Recent figures from UK Life Insurance also showed that women were less likely than men to have insurance and knew less about it. Only 29% of women know what their loved ones will receive after they pass, compared with 44% of men.
When it comes to affording life insurance, over a fifth of women (21%) believe they can’t afford it versus just 10% of men.
