UK Population Fail To Protect Themselves And Their Loans
It is interesting to note the attitude of many individuals living in the UK, when it comes to taking out adequate and suitable insurance and protection for themselves.
A large percentage of the population are quite prepared to take out an insurance policy in order to protect their possessions, such as newly bought goods and home contents, they will even take out an extended warranty on things like a new television. But when it comes to protecting the thing which provides and pays for all these items, i.e. themselves, many people do not see the need for insurance, even to cover their outstanding personal loans and homeowner loans.
A recent survey conducted by Scottish Provident has shown that somewhere in the region of 71 per cent of the UK population has contents insurance and many will increase this at this time of year, yet only around 44 per cent of people have any form of life insurance and a large proportion of this is only sufficient to cover outstanding home owner loans and other personal loans or debts, it will not maintain the standard of living for family and loved ones. More worryingly, only around 15 per cent of people have any critical illness cover and only 9 per cent have any type of income protection.
For individuals without this cover, if they suffered a critical illness, as around one in three people will do in their lifetimes, or were unable to work through illness, they would still have to find the money every month to pay their home owner loan and other loans, let alone have spare cash to meet their other commitments. Most of those interviewed claimed that they would rely on savings, or that cover was too expensive.
To those people I ask a simple question, if your income stopped tomorrow how long would your savings last and with life cover starting from as little as £10 per month, can you afford to not take it out?
