Across the UK people insure their homes, their pets and their mobiles but many overlook the vital component that funds all of their day-to-day spending – themselves!
Recent statistics from an Aegon study reveal that many women are under-insured and yet for 28% women in the UK, the inability to support themselves or their families financially is their greatest financial fear.
The report found that 40% of 2,000 women polled believe it’s solely their responsibility to make sure that their family has enough income should the unexpected happen.
Yet over 51% of women in the UK have no form of protection at all to cover partners and children in the event of their death or if they are unable to work due to a serious illness.
Cost is seen as the main barrier to women better protecting themselves and their families, with nearly half of women thinking that protection is too expensive. 20% don’t see it as a priority and a further 19% think it’s a waste of money.
Nearly 38% women without protection say that were the worst to happen, they’d rely on their own savings if they couldn’t work for six months. However, 16% of women don’t have any savings at all, a further 16% think their savings would only last as long as six months, and just 13% believe their nest egg would support them for a year or more!
As well as turning to savings, 35% of women would rely on their partner’s income to manage financially. However, 19% of women rely on two household incomes to meet their day-to-day costs and other essential expenses, so if one of these incomes was reduced or lost completely it would lead to great pressure on the sole income in the household.
The survey also shows that:
22% would rely on state benefits provided by the government, which is likely to provide just a small portion of their usual income, and;
17% of women say that major budget decisions would need to be made in their household in order to cope financially.
Many women cite cost as the reason for not buying protection, but when life cover of £100,000 could cost as little as £7.43* per month for a healthy 35-year-old non-smoking female – this doesn’t seem like a high cost to pay for peace of mind and security for your family. To put this in perspective buying 4 bottles of wine per month costs around £21.
We know that insurance is a very dull subject, but experience has shown us time and again how essential a lump sum can be for a family when disaster strikes.
If you need to discuss your protection needs or know someone we can help please put them in touch.
*Assureweb quotes 24.03.2017, based on £100,000 life protection, for a 35-year-old woman over a 25-year term.
**Average retail price of a bottle of wine according to Bibendum (2016) x4.
This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action.