Nearly half (48%) of adults aged 18 to 40 don’t have a life insurance policy¹. This puts many in a precarious position, as the unfortunate reality is that the cost of dying is high.
Research has found that a premature death can cost surviving family members an average of £195,475 over the course of ten years².
These estimates are based that someone leaves behind a partner and two children. The figure fluctuates depending on the location – London is the most expensive area (£261,754), while Northeast England is the cheapest (£130,160). The average cost in Wales was calculated to be £147,858 and it was £153,631 in Scotland.
Of the adults under forty who do have a life insurance policy, 27% said they took life insurance cover out to pay for a funeral. This is an important cost to consider as a recent report has found that the average cost of dying, which includes a funeral, professional fees and send-off costs, is at a record high of £9,658³.
Whatever your age, it is advisable to seriously consider taking out a life insurance policy if you have dependents.
Planning ahead and taking out a life insurance policy could significantly alleviate the stress on your loved ones, should anything happen.
Get in touch
We can help you find the appropriate level of cover based on your specific circumstances and can advise you about writing the policy in trust so that the money will go directly to your chosen beneficiaries. This is also something that could be a useful tool for (IHT) inheritance tax mitigation and estate planning, so don’t hesitate to get in touch.
Learn more about us or read more about financial advice in our blogs.
Read what our clients have to say here.
¹,² Beagle Street, 2023
³SunLife, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
