Single parents, same sex couples and couples who are not married are ‘far less likely’ to be protected against death or critical illness, according to a recent report by Sainsbury’s Finance.
Government statistics show that over the past ten years, there has been a significant rise in the amount of households that are made up of same sex couples who are cohabiting (40pc), unmarried parents with dependent children (35.8pc) or single parents (14.8pc).
The recent study by Sainsbury’s Finance found that such groups were the least likely to have life insurance or critical illness insurance in place to protect them in the event of the unforeseen.
Sainsbury’s findings highlighted that in comparison to the 50pc of married couples who are sufficiently insured, just 32pc of single parent families, 39pc of same sex partnerships and 31pc of unmarried couples have made necessary steps to protect themselves in the event of death or serious illness.
The report raised concerns that during the modernisation and the diversification of the traditional family set-up, the importance of insurance products to protect family units are being overlooked.
Helen Williams, Head of Sainsbury's Life Insurance said:
“Worryingly, our research suggests modern family units are much less likely to protect their dependents with life insurance or critical illness cover than the traditional notion of a stereotypical family.” Whatever the make-up of your family, it's important to ensure you and your dependants are financially protected.
“Having life insurance and critical illness cover gives you peace of mind that if you or your partner dies or cannot work due to illness, you could have one less thing to worry about at a difficult time."
A materialistic nation?
A separate study by Zurich showed that over a third (37pc) of consumers would choose to insure the contents of their home above insuring their lives.
They found that in spite of the just one in three people holding life insurance, 73pc have home contents insurance, 58pc have buildings insurance for their home. Life insurance ranked fourth in the list of consumers’ priorities when it came to insurance.
Phil Brown, Head of Protection and Underwriting at Zurich said:
“Without life insurance, the devastation felt when a loved one dies can closely be followed by financial devastation when the family are unable to afford to live their current lifestyle”.
“For many, selling a family home soon after the death of spouse is a harsh reality.”