May 15, 2021

10 Shocking Life Insurance Facts


Crystal Group

“Of the five million self-employed people in the UK, only a staggering 4% have any form of income protection in place.”

If you don’t already have life insurance in place, you should take note of the following Top 10 facts!

10 Shocking Life Insurance Facts

1. Did you know that one in two people are diagnosed with cancer during their lifetime?

Survival rates vary considerably between cancer types. For example, according to statistics released by Cancer UK, 98% of men diagnosed with testicular cancer make a full recovery compared with just 1% of people who have pancreatic cancer.

Of the people who are diagnosed with some of the most commonly diagnosed cancers, 50% now have a ten-year survival rate or better.

But what would happen to your family if you fell into the 50% who didn’t survive? It’s a sobering thought.

Read more about the importance of life insurance

2. 42% of mortgage holders don’t have life insurance

If you die leaving debts, all your creditors will still need to be paid. That includes your mortgage.

So, what would happen to your property if you died without life insurance?

Well, your lender has the right to demand the full mortgage amount to be repaid. If the total value of your estate cannot meet this amount, the lender may request that your property is sold so that they can recoup whatever is owed to them.

Therefore, if you die without life insurance, your family could potentially be left without a roof over their heads.

3. Critical illness is the second most common reason for a life insurance claim

It’s not only cancer that claims people’s lives prematurely. The top five causes of premature death among people in the UK are:

  • cancer
  • heart disease
  • stroke
  • lung disease
  • liver disease

Even if you live a healthy lifestyle, you never know what’s waiting around the corner.

4.The average cost of a funeral in 2018 was £4,798

That’s the cost of a basic funeral, not a fancy affair. Would your family have the necessary funds to pay for your funeral if you were to die unexpectedly?

A life insurance policy can provide money to pay for your funeral and its associated expenses. Saving your loved-ones the stress and worry of finding the money from elsewhere.

5.One in five workers take at least three months off work due to sickness or injury

Although the overall trend for sickness absence at work is decreasing, one in five workers has to take at least three months off work because of injury or illness.

Many employers pay sick pay for the first three to six months’ absence, but not all do. And if you’re self-employed, how would you pay your bills and put food on the table if you were sick and unable to work for any prolonged period?

6.Average outstanding mortgage debt = £120,000

According to the Money Charity, longer mortgage repayment periods and larger loans are feeding this trend. For example, a 35-year mortgage term has increased from 2.7% thirteen years ago to a whopping 15% in 2017!

Also, wages have stagnated in real terms, causing the average mortgage debt to rise to new levels, and that, coupled with higher interest rates means it will become harder and harder for mortgage holders to pay off their debt.

7. 5,000,000 only 4% have income protection insurance

If you’re self-employed, how would you financially cope if you were unable to continue working because of illness or injury?

Of the five million self-employed people in the UK, only a staggering 4% have any form of income protection in place. That’s not a problem for you if you have considerable financial resources at your disposal. But how would you manage if you have nothing to fall back on?

8. The average cost of raising a child to 21 years of age is £230,000

If you have children, the average cost of successfully raising them to the age of 21 is £230,000.

If you died or became unable to work while your kids were still dependent on you, how would you manage?

9. Twelve months is the length of time you need to wait to be classed as a non-smoker

If you’re a smoker, any form of life insurance, including critical illness cover and income protection insurance will cost you much more.

By quitting smoking today, you’ll not only be healthier, but you’ll also qualify for cheaper life insurance 12 months down the line. So, why not give up smoking today, save the money you would otherwise spend on cigarettes over the next 12 months, and then use your savings to pay for a life insurance policy?

Find out what other factors could increase your life insurance premiums

10. £19,500 is the average cost of household bills for the year

If you were unable to work because you became seriously ill, or if you died unexpectedly, would you have enough money put aside to cover all your household bills for years to come?

Taking out a critical illness, life insurance, or health insurance policy certainly sounds like a good idea when you consider that the average cost of household bills for just one year is £19,500.

In summary

These are the top ten facts about life insurance.

If you don’t have enough money put aside to cover the cost of your mortgage, your household bills, your kids’ education, or your funeral, can you afford not to have some form of insurance cover?

See how Crystal can help you

As trusted experts, we offer clear, straight-forward financial guidance and policies.

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