Life insurance timebomb for co-habitees
Sixty six per cent of people living together as a couple do not have a will, according to surprising new research by price comparison site Confused.com. The new survey of 2,000 co-habiting and married adults also reveals that 50% of people living with their partner do not have life insurance.
Unsurprisingly, the number of people who do have wills rises with age: 66% of over 55s have a will, compared to just 24% of 18-24 year olds. However, 47% of over 55s who are co-habiting or married do not have life insurance.
Despite not having financial plans laid for the future, 65% of couples do have mortgages, 45% of which are in joint names, and 28% say they could not afford the funeral if their partner or spouse died.
Matthew Lloyd of Head of Life Insurance, Confused.com warns: "Having a will is a sensible step towards providing for the future but if you don't have life insurance too then your partner may find themselves facing money worries as well as grief should the worst happen. The cost of life insurance is lower the younger you are and so you can save money by signing up for a policy at a younger age. For example £100,000 of cover could cost as little as 17p a day.
He continues: "There seems to be a myth that unmarried partners are automatically protected but this is not the case. If one partner in a couple dies but you were not married or registered civil partners then you won't automatically get a share of your partner's estate if they don't have a will."
Five per cent of couples are embarrassed to talk to their partner about getting a will and this figure rises to 10% among over 55s. When asked how they would pay for a loved one's funeral if the money was not there, 9% would opt for a pauper's grave while 33% would turn to family for financial help, 19% would take out a loan and 20% would put the funeral on a credit card.
People without a will may wish to take advantage of Will Aid during the month of November where many solicitors will waive their fee in lieu of a donation to charity: willaid.org.uk.
To compare life insurance prices, visit confused.com/life-insurance.