Britons are more likely to pay out for insurance on their mobile phones than to consider paying for life insurance or critical illness cover, according to the latest study by Legal and General.
While 22% of people polled by the insurance company claimed to have mobile phone insurance, only 17% have critical illness cover and 14% have an income protection policy. 54% of people questioned didn’t have any protection policies at all.
The study has highlighted that significantly more people insure their possessions than their life with two thirds of people saying that they have home contents insurance compared to just 41% for life insurance.
Bonnie Burns, Legal and General’s Protection Product Marketing Director comments: “The nation’s priorities seem misguided, with people more worried about losing their mobile than about how they would cope financially if they had a critical illness. We all know that it is difficult to face up to our own mortality, but when insuring possessions is prioritised above insuring lives, then something has to be done.”
The survey has highlighted the need for UK employees to think about their future, in particular as the pensions debate continues to rage after new Government research revealed that an estimated seven million workers are still not putting enough away for their old age. Now the Government proposals for a shake-up in the pensions system could see UK employees paying into an automatic system.
The controversial new bill outlined in the Queen’s speech last week, will see British workers enrolled into a ‘personal account’ unless they decide to opt out. The scheme, devised to stop the ‘pension time bomb’, will see 4% of an employee’s salary placed into a pension fund, topped up by 3% by the employer and an additional1% in tax relief from the government.
However, while the hope is that employees will not be bothered to cancel their contributions, Legal and General’s research has shown that one in three will still choose to opt out.
Age Concern has been one organisation that has welcomed the new initiative. Commenting on the new reforms a spokesperson said: "We are pleased that the Government has decided to take up the Pensions Commission's recommendations for workers to be automatically enrolled into personal accounts or an occupational pension scheme, with the option to opt-out. This scheme should finally make pensions saving worthwhile for the majority.”
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