33% of self-employed workers don’t have life insurance
The latest study from top insurance company Beagle Street has found that only 1 in 3 (33%) of non-salaried workers have a life insurance policy. This includes a large number of self-employed workers, as well as workers on hourly wages and zero-hour contracts.
The same study found that 64% of workers who don’t have life insurance are worried because they don’t have cover in place to protect their families. The most common reasons for not buying life insurance include:
- Can’t afford it.
- Not sure if it is needed.
- Might not pay out.
Life insurance can offer a lifeline to your family in the event of your death by offering extra financial support to cover important costs like funeral expenses. Many of the UK’s biggest companies can offer life cover to self-employed workers and workers who are employed on an hourly wage. This includes top life insurance companies like:
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Life insurance also has one of the highest payout rates among personal protection policies, paying out for 96.7% of claims on average in 2023. Insurers paid out over £3.92billion last year to support parents and families across the UK following the death of a loved one.
How many people don’t have life insurance in the UK?
Life Insurance company Beagle Street surveyed 2,000 workers aged 18 – 50 and found that 2 in 3 non-salaried and self-employed workers did not have a life insurance policy.
Non-salaried and self-employed workers can often benefit more from having life insurance, as they won’t have death-in-service workplace benefits for their families to rely on.
Other key findings from the latest Beagle Street survey:
- 64% of people without life insurance were concerned that they did not have cover.
- 16% were worried about how their families would pay for their funeral.
- 14% were worried about how their mortgage would be repaid if they died.
- A further 14% were worried about the effect on their family’s quality of living and lifestyle in the event of their death.
Do I need life insurance if I don’t have dependents?
The main reason to buy life insurance is to protect your dependents, which could be your children or other people who rely on you financially (e.g. parents). If you don’t have dependents, you might decide that you don’t need life insurance or that cover is not worth it for you.
It can still be useful to have life insurance if you have debts or financial commitments (e.g. a mortgage) that will need to be repaid if you die. Even if your children are financially independent, this cost may still fall on them and a life insurance payout ensures that they won’t struggle with repayments.
Life insurance can also be used for Inheritance Tax planning, or you can take out a smaller amount of cover to ensure that your funeral is paid for.
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What happens if I don’t have life insurance?
Your family could be facing a significant loss of income in the event of your death and a life insurance payout helps them to maintain their current standard of living. This money can be life-changing for families and can be used to support your loved ones for years.
Your family would also have to find the money themselves to cover important expenses like:
- Funeral bills (can cost £1000’s).
- Mortgage repayments.
- Repaying other debts.
- School fees.
- Childcare costs.
- General cost of living.
Should I buy life insurance?
Ultimately, it is up to you to decide if you need life insurance or if it is worth reviewing your existing policy to make sure that you have enough cover.
There are a lot of options for life insurance policies, so it’s not always easy to work out which policy is right for you. If you need help with your policy, you can contact our friendly life insurance experts for free advice by CLICKING HERE or calling 0800 009 6559.
