Britons overestimate the cost of protection insurance

by Gill Montia

Story link: Britons overestimate the cost of protection insurance

Legal & General (L&G) is concerned that Britons don’t take out protection insurance because they believe they can’t afford it.

In the recent survey of 1,964 adults, L&G found that 65% of respondents over-estimated the cost of taking out £150,000 worth of life cover.

The group’s commercial director for housing, Karen Blatchford, points out that life cover can start from £6 per month, putting it within the grasp of even those on a tight budget.

For example, L&G’s direct premium for £150,000 level term assurance over 25 years for a healthy, non-smoking male aged 25 costs £8 per month.

When asked to estimate the premium for this cover, 24% of people surveyed thought that it would cost between £11 and £20; 18% put the monthly premium at between £21 to £30 and 22% at over £30.

For the same client and terms, adding L&G’s critical illness cover would cost a further £18 a month.

However, 14% of respondents estimated the cost at between £21 and £30, while 23% said it would be in excess of £30.