Health, house, car, business, life…there seems to be an insurance product for everything these days. But is insurance really necessary or worth it? Some insurances are mandatory but those that aren’t are often not fully considered.
The Association of British Insurers (ABI) with help from Consumer Intelligence, a UK-based data analytics company, reported that in 2018 they found that 1 in every 4 households has no contents insurance. What was even more frightening in the report was that out of those that did have it, a large majority had guessed or estimated the value, leaving them subject to huge losses in the event of a claim.
So, are we just really bad at insuring ourselves or do we just think it will not happen to us?
For many, insurance offers the twofold benefit of back up in times of trouble as well as peace of mind.
Many question if health insurance is really necessary? We may be proud of the NHS but an ever-increasing elderly population and spiralling costs are a threat. Launched in 1948, www.nhs.uk currently states that it treats 1 million patients every 36 hours. As amazing as this is, it’s also unsurprising that we hear stories of beds in corridors.
What we suffer from is called the protection gap, or ‘under insurance’, which The Geneva Association believe is ‘one of the most pressing issues facing societies’.
So why are people taking risks?
Often, the answer is in perception. For many insurance is seen in terms of cost rather than benefit. After all, the money you save in not having insurance can go towards other things. But ask yourself what you would do if the worst did happen. If you lost your job, became seriously ill or the unthinkable, a family member passed away, would you be able to maintain your current standard of living? Who would pay your monthly outgoings?
Most people want to look after themselves and their family. There’s also no point in working and then having it all taken away when a life event occurs that you thought just wouldn’t happen. Assessing what’s essential and what’s desirable then might be the goal.
If navigating your way through the options seems confusing, discuss your options with one of our advisors, please call us on – 01483 930390