Lack of Life Insurance Cover Creates £2.4 Trillion Protection Gap in the UK

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Research highlighted by Barclays raises concerns over the fact that nearly two thirds (60 per cent) of adults in the UK do not have life insurance, which could mean that Britain is facing a protection gap in the UK insurance market of £2.4 trillion.[1]

Nearly two thirds (60 per cent) of adults in the UK do not have life insurance, which supports the view that Britain is facing a protection gap in the UK insurance market of £2.4 trillion.[1]

According to new research by Barclays, the main reasons for not taking out life insurance were the increasing pressures on household expenditure and needing to cut back (42 per cent), separating from a partner (27 per cent) and a quarter believing it’s a waste of money.

To help customers better protect themselves financially, should the worst happen, Barclays is encouraging customers to review their protection needs and is offering three months cash back to customers who purchase a life insurance policy between 21 April and 1 June 2012*.

Kieran Murphy, Managing Director, Barclays Insurance said: “Many people have a natural blind spot regarding the financial security of their dependents should they unexpectedly not be here tomorrow. However, it’s really important people consider how their dependents would cope financially should the worst happen.

“Life insurance and knowing your family are protected is really valuable and obtaining the right level of cover needn’t be too costly. We know that household budgets are really tight at the moment, but it’s important that protection needs don’t slip down the list of priorities.”

Barclays Life Insurance provided by Aviva is a comprehensive policy, providing customers with affordable and reliable cover, with a number of additional features:

  •     Simple, great value life insurance from Aviva pays a lump sum of up to £500,000
  •     16 per cent discount when you buy online, in addition to the three months cash back offer – apply online and be covered in just 15 minutes
  •     Choose either level term or decreasing term cover
  •     Monthly premiums from only £5 a month (just 17p per day)
  •     A 35-year-old non-smoking woman could pay £13.18 a month for £250,000 of level term cover for 25 years
  •     Your monthly premiums stay the same throughout the life insurance policy term

Barclays Life Insurance provided by Aviva policies can be purchased at any Barclays branch, telephone banking and via http://www.barclays.co.uk/insurance

Notes to Editors:

[1] Swiss Re 2009
Methodology: Opinion Matters survey of 1267 UK adults (3-10 April 2012)

*Three Months Cashback : Customers who complete an application for life insurance policy provided by Aviva during the offer period (21 April and 1 June 2012) and where both the policy is still current after three months and all policy premiums have been paid to date will qualify for a rebate (refund) of their first three months premiums paid.

From £5 per month a 35 year old male nonsmoker could get circa £30,000 worth of cover (20 years level term cover) with Barclays Life Insurance. But if that individual earns £20,000 a year this could only provide enough to support general living expenses (bills, food, car, etc) and any existing commitments (mortgage, credit cards or loans) for no more than two years, without putting more pressure onto the family’s lifestyle. However, for an extra pound a month the same 35 year old individual could more than double their level of cover (£78,000).

About Barclays

Barclays is a major global financial services provider engaged in personal banking, credit cards, corporate and investment banking, and wealth and investment management.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website http://www.barclays.co.uk

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Emma Austin
Barclays
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