Why life insurance matters

Workers in the UK are facing a ‘life insurance equality gap’, according to research¹. The life insurer’s survey reveals just 50% of salaried workers have taken out life insurance, while just 33% of non-salaried workers, including self-employed, freelancers and workers on zero-hour contracts, have life cover in place.

Why is life insurance important?
Life insurance can help your family feel financially secure when they need it most. The payout can cover essential costs, such as a mortgage, rent, household bills, or education. It also helps settle outstanding debts, so loved ones aren’t left overwhelmed with demands for money. And for those with larger estates, it can also be a valuable estate planning tool, as life insurance payouts are typically Inheritance Tax-free, ensuring your beneficiaries receive the full benefit without deductions.

Is life insurance too expensive?

Despite its importance, many people delay purchasing life insurance, often assuming it’s too expensive. The survey found 25% of non-salaried workers and 19% of salaried workers cited high costs for not having life cover. However, this misconception needs to be challenged, as in most cases, policies start from just a few pounds a month, offering substantial protection at a relatively low cost.

Peace of mind included

Beyond its practical benefits, life insurance provides peace of mind, ensuring families will be supported through difficult times. According to the survey, nearly two-thirds (64%) of self-employed workers without life insurance were worried about lacking life insurance. Among these, 16% are worried their loved ones might struggle to cover funeral expenses. Additionally, 14% fear their family could be burdened with debts like loans or mortgages, while another 14% are concerned that their family’s quality of life would decline if they were to pass away.

Ryan Griffin, Beagle Street’s Director of Protection, said, “It’s vital that everyone who could benefit from having life insurance, can access it. Not only this, but there must be affordable and accessible options that work for people and their families. Advisers play a key role in helping people find the protection that suits their needs and we value the support they give to those looking for cover that is right for them.”

Planning for the worst is never easy, but it’s necessary to secure your family’s financial future. Life insurance provides a simple and effective way to make lasting plans that ensure your loved ones get the financial support they deserve.

As with all insurance policies, conditions and exclusions will apply

¹ Beagle Street