There is a major discrepancy between perceptions and the reality of protection, according to a recent report by the Association of Mortgage Intermediaries (AMI).
More than six in 10 people say life insurance is important, even though fewer than three in 10 currently own a policy. Similarly, over half say the same about critical illness insurance, including 17% who consider it very important, but only 9% benefit from this protection.
Protection misconceptions
The report revealed some of the top reasons people avoid taking out a protection policy, including “I don’t have a mortgage” (38%) and “I can’t afford it” (35%).
With policies starting from a couple of pounds a month, protection can cater to all budgets, while significant financial liabilities extend beyond mortgages. For example, it is vital to consider the impacts of lost earnings and how this might affect any dependants you have.
Start young
Worryingly, three in ten people aged 18 to 34 think they are “too young” for protection. Accidents can arrive unexpectedly, making protection a crucial part of financial wellbeing at any age. Moreover, premiums are generally based on your age and health condition, which can make taking a policy out at a younger age a shrewd financial decision.
Here to help
We can help you find a policy with the right level of protection for your unique needs. Get in touch today!
🚨 Data accurate as of the date of publication –……
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q1 2023
