| Only 42% of UK consumers hold life, income or critical illness protection | Affordability and lack of awareness are key reasons for underinsurance | Major life events often trigger protection decisions, sometimes too late |
Have you got protection in place? A survey of over 14,000 UK consumers1, has discovered that just 42% have protection policies arranged, including those purchased privately and held as part of an employee benefit package.
Encouragingly, three-quarters of people who hold a life policy and two thirds with income protection and critical illness cover regard their policies as essential.
The ‘have nots’
People not holding life insurance cited most common reasons as affordability, no requirement, limited knowledge or confidence in arranging cover. Just under half (47%) without cover, have never even considered arranging it. A change in financial circumstances, or sourcing a more affordable policy, has prompted 9% of people to cancel or reduce their level of cover in the past two to three years.
Trigger moments
As expected, major trigger moments in life tend to prompt people to arrange cover, with most policyholders securing plans when buying a home or securing a new mortgage. For those aged over 50, insurance was typically bought after a bereavement or milestone birthday.
Need a helping hand?
The research uncovered a degree of difficulty associated with comparing policies and prices, with people often unsure of their actual requirements, with some compromising their choice of policy due to health and affordability concerns. If you would like to better understand your protection needs, guidance is available.
1FCA 2025/6
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
