A survey for SunLife has revealed that the perception of the cost of Life Insurance is 394% higher than the actual cost, giving yet another example of the disparity between the perception and reality of life insurance.
48% of the 1,011 people surveyed by Critical Research cited affordability as the main reason that they hadn’t taken out life insurance. On average, the premium for £100k of life cover was thought to be £50.98 per month, with 48% of respondents saying that they had no idea how much life insurance costs.
Worryingly, a small number of people (8%) had no idea of the financial implications of not having life insurance.
This ignorance and the false perception of life insurance is a key factor in the width of the protection gap and dispelling it and educating your clients on the necessity of life insurance will be vitally important to closing that gap.
