53% of Dads have No Life Cover
According to research by Scottish Widows, 53% of Dads have no Life Cover. This equates to almost 4 million fathers. In addition to this, only 16% of Dads have Critical Illness Cover. Critical Illness cover pays out a lump sum if a policyholder suffers certain medical conditions such as Cancer.
Having looked at the data, we find it concerning that 22% of Dads admit their household would be put at financial risk if they lost their income. And, only 28% could be certain they could pay their bills for 3 months or more. Unfortunately, this is more common than most people think. This is because we tend not to save as much now as we did in years gone by.
Why do Dads have no Life Cover?
People take out life cover for different reasons. If you seek a mortgage via an Advisor, then it’s likely that they will recommend you take out protection. Generally, we find most customers heed this advice and take out a policy. Other times, it’s life events such as having a baby, or the death of a family member, which trigger someone to take out cover of their own accord.
Of course, thinking about the fact you will die one day isn’t something that many people do very often. In fact, we don’t really think about it at all. People appreciate that they need cover but say “I’ll get around to it”, yet rarely do. So, maybe more people need to think about what might happen if they weren’t around anymore?
The same applies to Income Protection cover. You might think it will never happen to you or your Employer will take care of you if you are off sick, but the reality could be very different. Also, if you are off work, long-term due to illness then it will be much more expensive to take out cover later.
Life Cover is very inexpensive for most people. You might only need decent cover for a short number of years, for example until your mortgage is repaid or your children are out of full-time education. Insurers calculate the risk of a pay-out when calculating your monthly premiums and, if they think the chances are low, then cover will be cheap. It’s not unreasonable for cover to be a little £10 per month for some people.
Maybe the research finding that 53% of Dads have no Life Cover might change in the future.