UK public overestimate cost of life insurance by over 350%

13 July 2015 / by Isabel Buxton

New research from SunLife has indicated that many people have no real idea what life cover costs, with the average person surveyed overestimating the costs by nearly 400%. Of 1,011 people polled,  47% of individuals questioned admitted to not knowing how much life cover costs.

Misconceptions over life cover costs abound

Worryingly, over half stated that they had no life cover because they believed it was too expensive – a misconception which could cost them dearly in the future as 11% of those surveyed said their family would lose some or all of their monthly income if they because seriously ill or passed away.

When asked to estimate the monthly premium for life insurance worth £100,000, the average figure given was £50.98 – a vast overestimation when, as an example, some individuals may be able to get life cover to this amount for under £10 a month.

Experts respond

SunLife Managing Director Dean Lamble commented : “ 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.

Source: https://www.sunlifedirect.co.uk/press-office/public-overestimate-price-of-life-insurance-by-almost-400-/