You are here: Home - Insurance - News -

Uninsured over-estimate cost of cover

Written by:

Legal & General has urged people not to avoid taking out protection simply because they think it is too expensive.  

According to the insurer, 65% of people over-estimate the cost of £150,000 of life cover and 35% over-estimated the cost of adding a critical illness option.

Although 24% of people surveyed said £150,000 level term assurance over 25 years for a healthy, non-smoking, 25 year-old male would cost between £11 and £20, while 18% guessed between £21 and £30 and 22% thought it would be more than £30. However, L&G put the cost at £8 per month.

Adding critical illness would cost a further £18 per month, but 14% of those question by L&G incorrectly estimated between £21 and £30, while 23% thought it would cost more than £30.

Karen Blatchford, commercial director for housing at L&G, said: “Just 38% of the people we surveyed have life insurance, which is cause for concern. People may wish to consider covering not just their mortgage debt, but their family expenditure and bills. Most families would really struggle if there was an unexpected drop in the household income.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Students make use of flexible friend

The average student credit card balance is nearly £220, according to research from Halifax.