Brits “underinsured for life cover”

People need to start thinking about taking out life insurance when significant events change their circumstances, it has been claimed.

The Association of British Insurers (ABI) report that many people purchase the cover when they take out a mortgage, but events such as starting a family should also encourage them to think about it.

According to the organisation, a third of Brits have not got any life insurance and one third has not renewed their policy in five years and risk being underinsured.

Nick Kirwan, head of health and protection insurance for the ABI, claimed: “As a nation we are hugely underinsured for life cover.”

“But life insurance is very cheap,” he added. “[Particularly] at the ages when people typically start a family Ö in their twenties and thirties.”

Mr Kirwan explained that when people take out a mortgage, a financial adviser can recommend purchasing life cover, but when they start a family there is nobody to highlight the need for it.

He claimed that it would be good for people to realise that having children means extra responsibility and taking out a life insurance policy is a part of that.

© Adfero Ltd

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