EXCUSES, EXCUSES, EXCUSES - Confused.com reveals why Brits don't bother with Life Insurance
New research from Confused.com has revealed the reasons why so few Brits have taken out Critical Illness Cover, which pays out a lump sum if the policyholder develops an illness or condition covered in the policy. The comparison site says having some form of protection in place should the worst happen is important, relieving the anguish of money worries at a difficult time. Confused.com found: • Only 23% of people have critical illness cover; • Of those who have it, less than 1/3 (32%) have ever switched provider; • One in five claim they would manage with employer based payouts or state benefits if they became too ill to work, however: o Statutory sick pay is just £79.15 a week, payable for 28 weeks1; o The average household spends £471 per week2; o The average Critical illness policy payout is £73,1943; • 25% claim that it’s too expensive and a waste of money while a further 25% admit they don’t understand it and have never considered taking it out. 4% say they’ll live off savings. Yet: o 70% have less than £5,000 in savings; o 9% admit to spending money on a ‘posh’ tea or coffee every day at work and 26% find money each month for music and dvd downloads ; o Critical Illness Cover is available from just £5 a month; • 14% say they’re just too young to worry – although the average age for claimants is 444. Matthew Lloyd, head of life insurance at Confused.com says “Whilst Critical Illness Cover, which pays out a lump sum in the event the policy holder becomes seriously ill, might not be the right type of insurance policy for everyone, the reasons given for not taking it are worrying. Many people say they will be reliant purely on their employer and the State in the event that something goes wrong, but perhaps haven’t understood how little this could be in comparison to the cost of running their household. Others seem to have dismissed it as a waste of money or not even considered it. With so little savings to fall back on it’s important that people consider how they would manage and plan for an illness or they may find themselves worrying about finances when they should be focussing on their health.” Ends For further information please contact: Press Office Confused.com 02920 434 393 firstname.lastname@example.org Notes to editors 1 Average age of 44 as cited by Aviva and Friends provident 2 By law, employers have to pay statutory sick pay if an employee is under a contract of service and is off sick for four or more days and has average weekly earnings of at least £97 a week. Statutory sick pay is currently just £79.15 a week, payable for a maximum of 28 weeks. Some employers may offer their own schemes paying more than SSP, but employees should ensure they know exactly what this is and how long they will be paid for in the event they become seriously ill. 3 http://www.statistics.gov.uk/cci/nugget.asp?id=284 4 The average Critical illness Cover policy payout is £73,194. Based on the average payouts of Aviva, Bright grey, Friends provident, Legal&General and LV=. About Confused.com: Confused.com is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance. Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators. Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.