Half UK population value possessions more than their life

03 July 2019

More than half the population are prepared to insure their mobile phone, gadgets, and other possessions before themselves, new research by Co-op Insurance can reveal.

The insightful data shows that less than half (48%) of UK residents have purchased life insurance but have taken out cover for objects they own.

Of those who don’t have life insurance, almost a fifth (18%) say that they have never even thought about taking out life insurance, despite the majority having insurance for things such as mobile phones and other gadgets.

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The survey also highlighted the need for insurers to be more flexible in the design of their products. Four fifths (80%) of people say that insurers should do more to help people who fall into financial difficulty, with three fifths of these (58%) thinking that insurers should offer extended payment holidays of more than one month.

Co-op Insurance recently re-entered the life market alongside its partner Royal London with a life policy, which offers extended payment holidays. This distinctive feature was designed in conjunction with Co-op Members, who were keen to ensure that policies did not lapse un-necessarily during the term.

The product offers a level term, decreasing term or monthly income benefit and:

  • Includes the option to take two six month payment holidays throughout the lifetime of the policy after a 12 month qualifying period, allowing their policy to remain in force
  • Customers can also opt to reduce their cover level rather than pay back any shortfall at the end of the payment holiday window

Charles Offord, Director of Co-op Insurance, said:

“It’s hard to imagine that many people will insure their possessions ahead of their own lives, but that is the reality.

“Our research has shown that the inflexibility of life products is a clear barrier to people insuring their lives and protecting the futures of their dependants. Our extended payment holidays provide the peace of mind our customers and members are looking for to ensure their policies remain in force throughout the term.”

ENDS

Notes to editors

Product overview

  • Level – pays out a fixed lump sum. This cover has been designed to provide a lump sum for dependents
  • Decreasing – Pays out a single amount that reduces over time. This cover has been designed to help cover a repayment mortgage based on a fixed interest rate of 7%.
  • Income benefit – a monthly income of up to £2,500 paid between claim and the end of the term.

About Co-op Insurance

Co-op Life cover will also include an optional serious illness cover. This benefit pays out a set amount of money to the customer on diagnosis of a one of the following six serious illnesses: cancer, heart attack, stroke, multiple sclerosis, benign brain tumour and dementia.

Customers can find out more information by calling 0800 678 3928 or visiting www.coop.co.uk/life