Better Prepared to Die Than to Live

Article published on 4th August 2008

Continuing are look into the findings of Yorkshire Building Society into the state of British savings and personal insurance cover, it seems that of those Britons who do have some personal insurance in place, the vast majority have focused on purchasing cover in the event of their deaths instead of in case they cannot work.

47% of Brits with personal cover have opted for life insurance, with only 17% going for critical illness insurance and a meagre 10% purchasing income protection insurance.

The benefit here is that the majority of Britons who have insurance are well prepared (financially speaking) for their own deaths, leaving their families and loved ones with financial aid to fill the void that their death creates in their household's income.

On the other hand these findings show that the majority have sorely underestimated the likelihood of contracting a critical illness or a long term condition that might prevent them from working and of course the burden that these would place upon their finances and the whole of their family...

Tanya Jackson, Corporate Affairs Manager at Yorkshire Building Society has commented: In the current economic climate, this research paints an extremely alarming picture for those consumers without any protection products in place. Finances for many are already finely balanced due to the rising cost of living and the research reveals that both state benefits and savings are not viable options for the majority of consumers to rely upon for an adequate length of time.

"It is extremely worrying to see that many Britons are 'living on the edge' and we therefore urge consumers to take a look at their protection needs in order to assess how they would cope financially if they were taken ill and whether they would benefit from the security that a protection scheme provides."

Sources:

http://www.guardian.co.uk/money/2008/jul/25/debt.savings



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