A study has shown that Londoners are the least likely to have life insurance in the UK – with 68% of adults in the UK capital stating they had not purchased life cover -10% more than their Scottish counterparts (58%).
While almost two in ten (19%) of those polled in London said they could not afford to purchase life insurance – slightly lower than the UK average (21%), the same number also (19%) claimed that they did not see the benefits of taking out life insurance cover.
A similar sentiment was also reflected on a national scale with over one in five (22%) of those polled stating they didn’t have a policy because they would not personally benefit.
This number rose in the Midlands, where 27% of adults said they did not see the benefit of purchasing life insurance, despite one in ten (10%) admitting that their family members would need to find an additional source of income if they passed away – a figure in line with the national average.
In addition to this, 36% of those surveyed from across Britain also admitted they had little to no understanding of what life insurance represents.
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Life coverage varies
Across the nation, the number of British adults with life insurance cover varies. In Wales, almost two thirds (64%) said they did not have life insurance cover, while in the East of England, 61% said they did not have a life insurance policy.
Commenting on the findings, Dr Thomas Webb, a social psychologist at the University of Sheffield and chair of the Institute of Inertia, said: “Planning for the things we can’t control may seem like a futile exercise, but not when you are actually ensuring that your family is taken care of in the unlikely event of your sudden death.”
Jody Baker, head of life Insurance at comparethemarket.com, said: “It’s hardly surprising that most of us try to avoid thinking about death. However, a failure to consider and discuss the consequences should the worst happen can leave those we love in serious financial difficulty. It’s therefore vital that we do more to raise awareness and understanding of what life insurance actually offers: much-needed financial support and peace of mind.”
The findings came from a study of 2,000 parents by the Institute of Inertia – a partnership between comparethemarket.com and the University of Sheffield.
A separate study by YouGov, polled 4,112 adults across the UK to ask about life insurance.