Different people have widely opposing views of priorities for insurance.
Setting aside legal requirements – like insuring a car or motorcycle – what people consider valuable in terms of insurance throws up some insights in to how important we consider our finances.
For instance, 73% of tenants and property owners have home contents insurance, while 67% of property owners have buildings cover.
Pretty important and a justifiable decision for most people, you would think.
Critical illness or life insurance can be vital to leave partners, families and loved ones with much-needed financial security in the event of a life-threatening illness or worse.
But the old adage says if you haven’t got your health, you haven’t got anything, so it’s strange to think that although most people think life insurance with critical illness is the most important priority, the cover only ranks fourth in the list of popular insurance purchases.
The purchase list pans out like this:
● 73% have home contents insurance
● 67% have comprehensive car insurance
● 58% have building insurance (58%)
● 38% have life assurance
● 33% have travel insurance
More than a third (37%) have home contents cover but no life insurance – despite 23% ranking the cover their top insurance priority against covering their home, car or holidays.
The next must-have cover is comprehensive car insurance (20%), followed by buildings insurance (16%).
When buying insurance, most people shop around for the best cover (53%), nearly half say they shop around for the cheapest cover (45%) and 16% go for a trusted brand.
Phil Brown, of insurer Zurich, which compiled the data, said: “Although more people thought that life cover should be the highest priority in terms of having insurance, it only ranks fourth in the cover that people actually buy.
“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.”