Many are putting their families at potential risk should the worst ever happen.
This was among the findings from price comparison website MoneySuperMarket, which found people generally had underestimated their life insurance requirements by almost £140,000.
Generally people were not aware of how much cover they needed when it came to life insurance.
‘Almost half of people without life insurance did not know how much cover they needed, while men believed they would need 25 per cent more life insurance cover than women, at £124,533 and £98,629 respectively.’
Life insurance can pay out a lump sum or regular income if you die before a certain date. It can be used to settle debts, principally your mortgage, and to provide financial support for your dependants.
“It’s an absolutely crucial foundation for family finances, but millions of Brits either don’t have it, or don’t have enough.” – Tom Connor, spokesman from MoneySuperMarket.
There are varying types of life insurance out there as well as different product from various companies. It’s important to know which will work best for you and provide your family with the support they need should the worst happen.
We always recommend seeking advice before taking out life insurance to make sure you’re getting the best deal possible for your personal situation.