Financial Planning, Pensions Advice, Financial Adviser Dunfermline, Fife, Edinburgh and Central Scotland

Sunday 17th December 2017

14th November 2017

The number of women with Life Insurance, Critical Illness Cover or Income Protection has fallen by 37% in 12 months.

In November 2016, a study by Aegon showed that less than half (49%) of women were covered by financial protection policies. A year later and new data from Scottish Widows shows that number has fallen sharply; only 31% of UK women have Life Insurance and a mere 7% have Critical Illness Cover.

Insuring possessions takes priority over health and salary protection

According to the research, women believe that insurance is important for:

  • Household items and possessions (81%)
  • Their own health and life (33%)

This is a big difference.

It may be a result of an ‘it won’t happen to me’ mentality. However, 25% of respondents believe that their family could rely on state benefits to survive, and 51% say that a single income could support the household if they were to become seriously ill or die.

Practical Considerations are also at risk

UK women spend an average of 23 hours each week taking care of household and childcare tasks. 74% of women believe that these household responsibilities and childcare costs could not be covered if they unexpectedly fell ill or passed away.

However, 69% do not have a plan in place to cover the costs of outsourcing these functions, should the worst happen.

Worryingly, 54% of respondents have no guardianship plan or will to state what happens to their dependents if they die, leaving many households in a potential mess of financial, practical and legal turmoil, should the unexpected happen.

Why are so many women hesitant to take out protection?

Over a third (34%) of women without cover say that they either do not believe they need it, or they do not count it among their financial priorities. While 9% prefer to risk going without Critical Illness Cover, rather than pay for a policy they may never use.

Why is protection important?

Whilst we all hope to live long, healthy lives, having a plan in place, just in case, means that everything is already in order and loved ones do not need to worry about additional factors, should the worst-case scenario become reality.

Taking out financial cover and having a will or guardianship plan ready gives you peace of mind and means that if you die:

  • Your money will go to the people you want it to
  • Your children and dependents will be looked after according to your wishes
  • Your partner/children will not face a financial crisis
  • Loved ones face less stress at an already emotional time

If you are taken ill and are unable to work for a period, the financial protection will:

  • Cover household, mortgage and living costs
  • Lessen the financial burden on your partner and children whilst you are not earning
  • Help with medical costs and any assistance you may need while ill

Your next steps

Take out insurance. Life Insurance, Critical Illness Cover and Income Protection should be a priority for all families. Shop around for a policy which suits your needs and do not rely on cost alone as a deciding factor. It is advisable to contact a financial adviser to assist in finding the best policies for you.

At the same time, discuss and create a will and guardianship plan with your partner and loved ones, to ensure that your assets and dependents are taken care of and secure in the event of something going wrong.

Do not underestimate the impact that you have on your household and the way it works. For advice on protecting the future of you and your family, contact us on 01383 620333.