Online Life Insurance
Two-thirds of People Over-estimate Cost of Life Insurance
November 6, 2008 (FPRC) — Legal & General is concerned that people might avoid taking out protection because they think that it is too expensive. 65% of people polled1 by Legal & General over-estimated the cost of taking out Ј150,000 worth of life cover. 35% over-estimated the cost of adding a critical illness option to that life cover.
Karen Blatchford, Commercial Director for Housing at Legal & General said: “Life cover can start from as little as Ј6 per month, which even families on a very tight budget may be able to afford. We’re concerned that two-thirds of people are over-estimating the costs of protection.”
Ј150,000 level term assurance over 25 years for a healthy, non-smoking man aged 25 would cost just Ј82 per month. 24% of people that Legal & General questioned thought that it would cost between Ј11 and Ј20, 18% thought that it would cost Ј21 - Ј30 and 22% thought over Ј30.
Adding critical illness cover for the 25 year old man would cost a further Ј18 a month. 14% of people that Legal & General spoke to incorrectly estimated between Ј21 to Ј30 and 23% said it would be more than Ј30.
Karen Blatchford adds: “Just 38% of the people we surveyed have http://www.legalandgeneral.com/life-cover/ life insurance, which is cause for concern. People may wish to consider covering not just their mortgage debt, but their family expenditure and bills. Most families would really struggle if there was an unexpected drop in the household income.”
Ends
Notes to Editors:
1. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,964 adults. Fieldwork was undertaken between 18th - 21st July 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)
2. Based on Legal & General Direct rates. Correct as at 15 August 2008. Assumes applicant is healthy and therefore based on standard premiums.
1) This press release is issued by Legal & General Partnership Services Limited. Registered office: One Coleman Street, London EC2R 5AA.
2) The information contained in Legal & General’s press release is intended solely for journalists and should not be used by consumers to make financial decisions.
The Publicity Team
Legal & General House
Kingswood
Tadworth
Surrey KT20 6EU
01737 375351
Joe.wiggins@landg.com
website: http://www.legalandgeneral.com
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