Life - Articles - Price of life insurance overestimated by almost 400%

Public overestimate cost of life cover by 394%
Almost half have no idea what life cover costs
For those with no life cover, affordability cited as main reason why

 While we typically overestimate the price of a loaf of bread by 43%*, when it comes to life cover, we are – on average – a massive 394% out, according to research** by leading insurance provider SunLife.
 On average, people think £100,000 of life cover would cost £50.98 per month; almost five times more than the average premium of £10.31.***
 SunLife also found that 47% of people have no idea how much life insurance costs, with this rising to more than half (53%) of those who cited affordability as the reason why they have no life cover. And it seems the misconception of the cost gets worse with age, with 58% of 55-65 year olds admitting they have no idea what life cover costs.
 SunLife’s research also shows that of those that do not have life cover, more than a quarter (26%) are concerned that they do not have any in place. One in 10 (11%) said their family would lose all or most of its monthly income if they were to become critically ill or die while 8% said they ‘did not know’ what the financial implications would be.
 Dean Lamble, managing director at SunLife comments:
 “Our research shows people are not protecting themselves with life cover because they think it is much more expensive than it is; this misconception needs to be addressed. As an industry, we have an important role to play – we need to make life insurance more accessible so that more people realise they can afford it.”
 And even amongst those who do have life insurance, SunLife’s research reveals that only 39% of people are certain they have enough cover. One in 10 (11%) say they know they are underinsured while 15% say they don’t know how much cover they have in place.
 Dean concludes: “It is worrying that there are many families out there that either have no life cover or insufficient cover in place simply because they are overestimating how much it costs.
 “More than a quarter of those who don’t have life insurance say they are concerned about the fact they are not covered; we need to help these people get cover they can understand and afford so that, should the worst happen, they know their families are protected.”

Back to Index

Similar News to this Story

IFoA Longevity Bulletin considers pharmacological progress
Pharmacology has been one of the greatest contributors to the longevity improvements of the 20th century. The latest Longevity Bulletin from the Insti
Covid19 has changed attitudes to Life and Health Insurance
ReMark’s 7th annual Global Consumer Study (GCS), the benchmark survey of people’s attitude to life and health insurance, has shown that Covid-19 is ac
Bomad Bailout as parents extract cash from childrens savings
New research from Direct Line Life Insurance reveals the extent to which families have needed to rely on their children’s savings to get them through

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.