A survey by Go Compare of over 2,000 UK adults revealed that over 40% of mortgage holders would not have enough life cover to pay off their mortgage in the event of their death.* This could leave loved ones struggling to pay off the debt at an already difficult time.
According to the survey, a minority – just over a quarter – said that they had enough in the way of life insurance and other savings to clear their mortgage, cover other outstanding debts, and provide a reasonable income for their family and dependents.
In contrast, over half of those surveyed (58%) said that if they had an extra £10 a month to spare, they would sooner spend it on the National Lottery than put it towards life insurance. To put this into perspective, the odds of getting all six Lotto numbers are 13,983,815 to 1.**
Avoiding the inevitable
So why are so many UK adults failing to plan ahead? Survey respondents cited several reasons, including cost (64%), apathy (24%), and feeling that they’d left it too late to arrange sufficient cover (34%). However, Jeremy Cryer from Gocompare.com hits the nail on the head when he points out that: "None of us like to think about our own mortality.” Many of us are guilty of burying our head in the sand over things like life insurance and wills, because we simply don’t want to think about it.
However unpalatable it may be, it’s essential to plan ahead to ensure your dependents are financially protected in the event of your death. And it doesn’t have to be prohibitively expensive, either. As Cryer comments: "Our survey demonstrates many people think life insurance is expensive, but in reality cover starts from as little as £5 per month - which for the vast majority of us will be a better bet than money gambled on the lottery.”
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*Survey of 2,025 UK adults conducted by Vision Critical for GoCompare.com on 3rd-5th July 2013. Results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of UK.
** www.lottery.co.uk (04/09/13)
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