Shrinking the Protection Gap
1 in 2 people will be diagnosed with cancer. So why do most UK adults still have no protection in place?
IEP Financial explore why there is a protection shortfall of £2.4 trillion in the UK.
In fact, there are three main reasons as to why people don’t take out cover:
- Too expensive
- Not a financial priority
- Don’t need it
Almost a third of people surveyed said they didn’t think they could afford life insurance. But respondents in a 2015 Sunlife survey estimated life cover to be on average 394% higher than the actual cost.
This raises the question – is it actually too expensive or is it simply perceived to be too costly?
With advancements in healthcare resulting in increases in life expectancy, life insurance premiums are reducing therefore, there has never been a better time to look at this type of cover.
An adviser can help find the right balance between cost and cover – some protection is always better than no protection!
Not a financial priority
21% of people asked viewed their Sky package as a more essential purchase than protecting their income in case either them or their partner were unable to work.
The value in Income Protection is that it allows you to continue to enjoy all other ‘essential’ purchases, such as tv/mobile subscriptions, while also maintaining monthly mortgage/rent bills and a enjoying the same standard of living if you are unable to work for health reasons.
Protecting the Income that allows you to maintain your standard of living should be top of the list.
Again, this isn’t as expensive as many believe it to be, and an Adviser can help find the correct amount of cover for you.
See our guide on Income Protection
Don’t need it
Many people assume that the state will provide for them. But the extent to which the State will provide help is commonly over-estimated. With many benefits becoming increasingly means tested, conditional and time-boxed, one should consider protection to fill the gap that the State cannot provide.
Some adults may think they are too young to require protection of some sort, but with 40.1% of claims being paid to 21-34 year olds the need for protection for all ages is clear!
Contact one of our Independent Financial Advisers for further info and help in setting up the correct protection package for you and your family.
IEP Financial is authorised and regulated by The Financial Conduct Authority (FCA)
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Shrinking the protection gap was originally published on 25/09/2017
The value of investments can fall as well as rise and past performance is not a guide to the future. The content of this publication is for information only. It does not represent personal advice or a personal recommendation, and should not be interpreted as such. Please do not act upon any part of it without first having consulted an Independent Financial Advisor’