Friends Provident say that homeowners are putting greater value on the contents of their home than on the home itself. Just over two-thirds (69 per cent) have life cover to help their families meet mortgage repayments should the worst happen, compared with more than nine out of ten (92 per cent) who have contents insurance.
Over three-quarters (78 per cent) of people questioned believed that breadwinners have a greater responsibility to ensure that their immediate families are provided for if they die. However, the reality, according to Friends Provident, is that many people are not taking this responsibility seriously enough.
But this could be because understanding of the product is poor. The research showed that the level of understanding around protection products is poor. Just over a quarter (28 per cent) of homeowners could correctly identify term assurance as providing a tax-free cash sum in the event of death, while four in ten (41 per cent) admitted they had no idea what it was.
Ian Jeffries, head of protection marketing at Friends Provident, said: Most people are happy to insure their car, their laptop, or their mobile phone, but often give too little thought to insuring themselves.
Everybodys circumstances are different and people need life assurance cover for many different reasons. The key thing for people to remember, especially for those with families or other dependents, is that life assurance can soften the financial difficulties for loved ones should the worst happen.
