One of the banks has an advertising campaign talking about the fact that people find it difficult to talk about money. Right at the top of the list of hard to discuss items is life insurance. No one wants to think about it, but everyone needs to protect themselves and their families form the unthinkable.
In 2018 insurance company. Aegon paid out 98% of life claims- a total of £67.1m to 742 families and businesses. The average size of a life claim was £90,435 last year and the average age at claim was 62 years old, with cancer representing the most common cause of death at 47% of claims followed by heart-related conditions. With UK life expectancy at 80.96 years according to the Faculty of Actuaries, the average age quoted above represents over 700 shocking and unexpected events.
The range of conditions that can be accommodated by insurers widens all the time as advances in medicine mean more people survive and thrive during and after what were previously life-threatening illnesses. Ten years ago, less than 50% of providers would consider those with HIV related conditions. Today 70% of companies are now offering some form of Life Assurance to HIV Positive people, according to Chris Morgan of the Unusual Risks blog. Cancer survivors, those with diabetes, people with a history of heart problems and many others who have endured – or continue to live with – serious medical conditions form a large proportion of society. These are now catered for in some form by mainstream life insurance companies.
Life Insurance policies cover, and exclusions all change as the population does. What will not change is the requirement to be covered to protect your family. According to the Office for National Statistics 42% of people with a mortgage have no life insurance in place. With this year marking the 50th anniversary of the first moon landing, remembering that even the astronauts had life insurance. As we said in our last review of the life insurance market “Life insurance can be a vital safety net for families. It is worth considering the consequences of not being adequately covered at your death”. As always, I am happy to review your specific circumstances so get in touch if you need some advice.