A deathly silence…
It’s a grave fact - you can’t escape death, no matter how you try and prevent it. However, new research released from Confused.com reveals that over a quarter (29%) of Brits feel uneasy just thinking about death. And more than two in five (23%) people also feel uneasy just discussing anything around the subject of death.
The findings from the price-comparison site reveal that death is the subject that people find the most difficult to discuss (29%). Even more so than thorny subjects such as money (9%), politics (8%) and adultery (7%).
In a year alone, there were just under six hundred thousand recorded deaths in the UK, so while it is a taboo subject for many, it is an unavoidable fact that death inevitably goes hand-in-hand with life. Unfortunately, this means that planning for the future of your loved ones when you’re no longer around is a subject that seriously needs to be addressed.
However, the research suggests a mentality where nearly a quarter (24%) of Brits are opting to live for the moment, rather than thinking too far into the future. The ‘Fly by the seat of your pants’ lifestyle isn’t necessarily a bad thing as long as people are financially prudent.
Judi James, body language and communications expert comments: “Our issues around death probably go deeper than sheer fear. In many ways death feels almost extinct in modern life. As we push back the boundaries of ageing we might also be in denial about death, feeling subconsciously that we have made dying an option rather than a certainty.
“Unlike our predecessors who lived with death and embraced it as part of their culture as a result of wars and illness, today we see it almost as an uncommon occurrence rather than a natural part of living. This would have the effect of inverting our priorities so that we invest in our living rather than our dying and not plan for our financial future.”
When it comes to future financial planning, 59% of Brits admitted that they don’t have life insurance. Even more worryingly, 64% of people who don’t have life insurance said they don’t have any other type of financial fallback if the worst were to happen. This could mean leaving loved ones in a financial crisis at a sad time when they already have so much to deal with.
So why are so many people failing to plan financially for the future – in some cases forgoing life insurance? One reason is the belief that life insurance is too expensive (38%). However, with life insurance costing as little as £5 a month, it’s not really affordability that should be questioned, but people’s priorities.
Other reasons include people thinking they’re too young to have life insurance (16%) and not wanting to think about dying (15%). Surprisingly, nearly one in six (15%) people don’t even know why they need life insurance. And more than one in 10 (13%) Brits admit they don’t know what life insurance is.
Confusion around the subject of life insurance has clearly been identified in the research, with nearly one in six (15%) Brits incorrectly viewing life insurance as a way of protecting them financially in the event of injury, disease and sickness. Some people even see the insurance as a way of protecting themselves if they lost their job (6%) or as a means of providing a steady income when they retire (3%).
With so many people not understanding the benefits of taking out life insurance, it’s no wonder that people aren’t planning for their financial future and preparing for death.
Judi James continues: “Discussing death is treated as bad etiquette and even planning for dying is perceived as pessimistic and gloomy rather than realistic and logical. Ignoring it or failing to plan for it pushes it further away in our own minds to the point where people will even refuse to discuss death with a dying relative.
Thanks to the boom of the credit card economy we are now living our lives more and more on HP, meaning we embrace the ‘Live now – pay later’, instant gratification ethic. People used to be proud of the fact that they had made provisions for their loved ones for after their death but that same conversation might seem embarrassing in modern society where we feel that death is something that happens to other people, and unlucky ones at that. Therefore taking out life insurance may seem a confusing and unnecessary purchase.”
Even the name ‘life insurance’ can be bewildering for many, which may well be adding to the confusion. Nearly two in five (39%) people believe the term ‘life insurance’ doesn’t describe what the insurance covers.
As death is a subject that people already find difficult to discuss, it’s important that when they do broach the topic they understand exactly what life insurance is and why it’s needed. People need to understand how to make sure their loved ones are financially protected in the event of their death.
When asked nearly half of Brits (43%) felt the name ‘life insurance’ should be changed to reflect more explicitly what the cover actually offers. The top five names suggested were:
1. End-of-life insurance – 18%
2. Family protection insurance – 16%
3. Death insurance – 15%
4. Life after death insurance – 13%
5. Family insurance – 8%
Matt Lloyd, Head of Life Insurance at Confused.com says: “Death remains a taboo subject for many people; however hundreds of thousands of people die in the UK every year so it’s a subject that needs to be addressed and talked about within families.
With 59% of people not having life insurance and 64% of them not having any other type of financial fallback this shows a worrying future for peoples’ loved ones. The benefit of life insurance is peace of mind for you, and financial protection for your family – knowing your family can support themselves, and still have a quality of life after you’ve died.”
“A standard life insurance premium can start from as little as £54 per month. And with the help of Confused.com customers can get a good deal by comparing leading UK life insurance providers helping you ensure your loved ones are protected should you die ahead of plan.”