Average UK adult thinks they are worth £350K

When it comes to putting a price on their life, the average UK adult believes they are worth £350,000, according to research by the Post Office.

When asked to consider everything they own or value in their life, including their home, car, annual salary and all their possessions, respondents came back with an average amount of £350,000.

Many people seem to value themselves in terms of their homes as their biggest asset, as there is a direct correlation with house prices and self-valuation. For example Londoners value themselves at £500,000, with an average house price of £345,000 whereas those in the East Midlands only value themselves at £300,000, with an average property at £142,000.

Adults approaching, or already in retirement, emerged as the group who valued themselves the most (£500,000). On average people in their sixties valued themselves more than double that of people in their twenties and thirties.

Regardless of the value people put on their lives, it is worrying how the majority of people don't have protection. Almost 36 million (75 per cent) adults in the UK have no life insurance, posing a real financial risk to them and their family if anything was to happen to them. Although the cost of life insurance has dropped by 70 per cent over the last 30 years, more than a quarter of adults (28 per cent) claim they simply cannot afford it, while over eight million (18 per cent) adults feel their lives are not worth insuring at all.

Whilst it is natural that people may wait for certain ‘life' triggers before considering life insurance, it often inevitably slips down the priorities list. One in seven said they would take out life insurance when they have a child (14 per cent) or when they buy their first house (13 per cent) and one in 10 (10 per cent) when they get married. However, four in 10 adults (39 per cent) suggest they could already be at risk by saying they should take out life insurance as soon as possible.

Post Office head of protection, Duncan Caesar-Gordon said: "Regardless of the average UK adult valuing their life at £350,000, which is over double the average life insurance policy, it is worrying that so few people have taken measures to protect themselves. Whilst it is encouraging that people can successfully identify the key stages of their life when they should consider life insurance, it is concerning how few people then actually go on to take it out.

"What is interesting is the calculation that people make when working out how much their life is worth. What people need to consider is a lump sum of money that will help their loved ones pay towards something like a mortgage, should the worst happen.

"Thinking about the future and how the family will cope should the unexpected happen is a worry that can be easily avoided by taking out life insurance. With a typical cost of £10 per month people would have peace of mind knowing that their loved ones are protected."

Customers who take out a Post Office Life Insurance policy from 18 August will receive £25 cash back, after three months, if their policy is £10 or more per month.

To find out more about Post Office Life Insurance cover, log onto postoffice.co.uk