Around 1.5 million households – about 6.5 per cent of all households in the country – do not have enough life insurance to pay off the mortgage and priority debts if the main breadwinner should die, claims an insurance comparison site.
Despite the desperate situation they could leave behind for their partners or children, two-thirds of would rather spend £10 a month gambling on the lotto than buy life cover, says Go Compare.
Most people just can’t be bothered to buy life insurance even if they can afford to, blaming cost (34 per cent); apathy (25 per cent) or not knowing how to buy cover (nine per cent).
Jeremy Cryer, from Gocompare.com, said: “No one likes to think about their own mortality, which is why life insurance is a difficult product for many of us to consider. It is important to plan ahead and make sure loved ones are financially protected when we are no longer around to look after them.
“It can be difficult working out how much cover you need, but as a basic rule of thumb, you should certainly be thinking about buying enough cover to clear any outstanding debts, including your mortgage, and providing a capital sum for your dependents.”
Life insurance can cost from £10 per month, with the level of cover depending on age and other factors, like health.
A 30 year old could arrange a policy of up to £175,000 for £9.94 a month over 30 years, while the same monthly amount would buy a 50 year old £55,000 of cover for 10 years.
Meanwhile, a separate survey for Sainsbury’s Pet Insurance reveals that pet owners are forking out around £1,000 a year to feed and pamper a dog or cat.