02 July 2019 More than half the population are prepared to insure their mobile phone, gadgets, and other possessions before themselves, according to new research by Co-op Insurance.
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.
Insurance policies held by people who don’t have life insurance:
|4||Warranty on electrical items||6%|
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.”
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