Summer Holiday, Satellite TV Or Life Insurance?

Luxuries such as a summer holiday or satellite TV are being put ahead of buying life insurance, is that a sensible move?

According to the latest Aviva Family Finances Report, whilst 50% of families are happy to pay for a satellite television package, just 40% have life insurance.

The majority of UK families find it difficult to discuss personal finance matters and their own mortality and so avoid the issue of dealing with what would happen if the main income earner was no longer able to earn.

As a result, many families ignore the issue and fail to appreciate the value of protecting their family, compared to spending on other items.

It seems that families are more likely to have insurance for their mobile phone than insurance that will protect their family financially if they were to suffer a critical illness.

Equally, more people have taken out an extended warranty on electrical items than have income protection insurance, which would potentially pay an income for life should they be unable to work as a result of an accident or illness.

With inflation, pay freezes and benefit cuts hitting families, most are trying to save money this year as well as pay off their debts.

However, many misunderstand the value of protecting their families financially. More see booking a summer holiday as a higher priority than buying life insurance.

Louise Colley, head of protection sales and marketing, Aviva, says: “No-one likes to dwell on poor health or mortality, but by denying that illness – or worse – is even a possibility, people are stopping themselves putting measures in place to protect their loved ones.

“Too many people assume that someone else will step in and look after their families if they weren’t there to provide for them, but the reality is very different.

“People need to ask themselves just how they would pay for their accommodation, their food, and all the other costs of living, should they suddenly lose an income.

“While no-one likes to think about ‘what ifs’, by not even considering these scenarios, people could be putting the future financial security of their families at unnecessary risk.

“So many customers report feeling ‘peace of mind’ when they take out life cover, knowing their affairs are in order, so we’d urge families to overcome their taboos and put protection in place.”

MoneyHighStreet comments: “With household budgets stretched, one of the first things cut by many is insurance. Some insurance, such as buildings or car insurance is essential. Others range from highly desirable to perhaps just desirable or nice to have.

Life insurance, contents, pet and travel insurance all, we feel, fit in the highly desirable category – they will give you peace of mind and could save you a fortune.

You may find our article on ‘Insurance: What’s essential and What’s desirable?’ helpful – just click here to see it.

Meantime if you want to compare life insurance, Quotezone.co.uk, enable you to quickly and easily compare quotes from a number of companies, including Friends Provident, Legal & General, Zurich and Axa – Click here for the Quotezone website and more details.

To find out more about life insurance from Aviva, see the Aviva website