Scottish Widows have carried out research which found that 53% of Dads have no Life Cover. This means there are roughly 4 million fathers in the UK that aren’t protected. In addition to this, only 16% of Dads have Critical Illness Cover. Critical Illness cover pays out a lump sum if a policyholder suffers certain medical conditions such as Cancer.
Looking at the data ourselves, we found it concerning that 22% of Dads admit their household would be put at financial risk if they lost their income. Furthermore, if they did lose their income, only 28% could be certain they could pay their bills for 3 months or more. Unfortunately, this is quite common. Mainly because we tend not to save as much now as we used to.
Those who do take out cover, do so for different reasons. One key trigger is applying for mortgages. When speaking to a mortgage advisor, it’s likely that they will recommend you take out a policy. Many customers heed this advice and take out a cover then. For others, the prompt comes from life events such as the birth of a child or having someone in the family taken ill or passing away.
Thinking about the fact you will die one day isn’t something that many people do very often. In fact, we don’t really think about it at all. But we often find that thinking about what might happen if you weren’t around anymore can motivate people to explore Life Cover. We find many people appreciate that they need cover but always seem to put it off until later.
The same applies to Income Protection cover. It’s quite worrying how many people think “it will never happen to me” when it comes to serious or critical illness. Other think their employer will take care of them if anything happens. But the reality can be very different. Also, if you are unable to work for an extended period due to an illness and then try and get cover, it will be much more expensive.
Life Cover is very inexpensive for most people. This is because there are plenty of options out there. For example, you might only need decent cover for a short number of years, maybe until your mortgage is repaid. Generally, insurers calculate the risk of a pay-out when setting your monthly premiums. If they think the chances are low, then cover will be cheap. It’s not unreasonable for cover to be as little as £10 per month for some people.
Maybe the research finding that 53% of Dads have no Life Cover might change in the future.