Your iPod or your life?
Friday, 08 December 2006 12:00
Britons are more likely to take out insurance to protect their possessions than their lives.
That is according to research from protection insurance specialist Bright Grey, which shows more people buy home contents insurance than life insurance.
The most popular insurance policy is home contents insurance, with almost three people in four buying this sort of cover.
Following home contents insurance, life insurance is the next most popular form of cover - with around half the population having bought life insurance.
But while protecting their home contents and life - not many people are protecting their mortgage meaning they could be left without a home to keep their contents in.
Fewer than one person in four (23 per cent) has taken out mortgage payment protection insurance.
Additionally, more people have their central heating, white goods or credit cards insured than have critical illness cover.
"It's astounding to see protecting mortgage payments so far behind contents insurance. Surely running the risk of losing your home is a bigger concern than losing your television and DVD?" said Roger Edwards from Bright Grey.
"Over three times more people insure their home contents than protect their mortgage payments - this makes little sense."
However, it is not as if Britons do not know what is most important to insure.
When asked what was most important to insure, Britons ranked life insurance top, followed by home contents insurance and then mortgage payments.
"Although people seem to know how important life insurance can be, many simply aren't taking out the cover," Mr Edwards said.
"For most, life insurance is key when it comes to planning properly for the future. It protects your dependents if you die and they lose your income.
"And if you don't have dependents, and really don't need life cover, then what about critical illness cover or income protection - if you value yourself, you should be protecting yourself.
"But many people seem to have lost sight of their real priorities.
"Their financial savvy seems to have gone out the window when deciding what insurance to buy.
"All this points towards the need for consumers to seek advice when it comes to cover, to help them understand their priorities, the options they have and to get the right things insured."
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