A new study has revealed that approximately 47% of British parent do not have life insurance and 44% have never discussed the financial implications of death with their partner or family. In Wales, the figures are even higher, with 64% saying they do not have life insurance cover.
The study found that this lack of life insurance or preparation for the worst scenario, could lead to 23% of UK families being unable to cover the cost of rent or mortgage repayment within one month of losing a main financial contributor.
Even though approximately one in ten admitted that their family members would struggle and need to find additional sources of income if they passed away, 27% stated they did not see the benefit in purchasing life insurance.
Leading social psychologists have argued that figures are probably so high because of a natural fear of death. Described and ‘Terror Management Theory’, this fear causes us to naturally suppress thoughts of death, therefore preventing preparation and action.
While most of us do not enjoy thinking about the death of a loved one or our own death, a failure to do so and process the consequences for our families can leave those we love in great financial difficulty in an already stressful and emotional time.
If you would like to discuss life insurance and how it can benefit you and your family, please don’t hesitate in getting in touch with the First Financial Solutions team. Call them on 01639 262222 or click here to contact them.