A life insurance gap has emerged between salaried and non-salaried workers in the UK.
- Just 33% of non-salaried individuals have life insurance, compared to 50% of salaried employees.
- Cost is a significant barrier, with 25% of non-salaried workers citing affordability issues.
- Concerns about financial security, such as funeral costs and debts, are prevalent among uncovered individuals.
- Efforts to facilitate access and affordability of life insurance for these workers are essential.
In the United Kingdom, a noticeable disparity exists in life insurance coverage between salaried and non-salaried workers, as highlighted by Beagle Street’s report. While 50% of salaried employees have life insurance, only 33% of their non-salaried counterparts, such as freelancers and those on zero-hours contracts, have similar protections. This reflects an underlying inequality in access to essential financial products.
One of the primary obstacles for non-salaried workers in obtaining life insurance is cost, with 25% of this group identifying it as a prohibitive factor. This is compounded by the lack of employer-provided benefits, which are typically available to salaried workers. Non-salaried individuals express significant concern over potential financial burdens their families may face, including paying for funeral expenses and inheriting debts.
Ryan Griffin, the director of protection at Beagle Street, emphasised the critical nature of addressing this coverage gap. He asserted that non-salaried workers, who often lack death in service benefits, stand to gain the most from life insurance. Therefore, there is a pressing need to offer affordable and accessible life insurance options that cater to the diverse needs of these workers and their families.
Griffin further noted the simplicity and accessibility of Beagle Street’s life insurance offerings, which could alleviate common barriers. A significant portion of applicants, over 70%, receive immediate acceptance without requiring medical reports, and the entire process can be completed swiftly, often within ten minutes. Additionally, insurance premiums can start as low as £6 a month, providing a vital financial safety net for families.
Despite the optimism around available insurance solutions, the necessity for affordable coverage remains paramount. Indeed, many individuals prefer the security of having life insurance over facing unforeseen circumstances without it. Professional advisers play an integral role in guiding individuals towards suitable protection, ensuring that despite their employment status, everyone has access to necessary safeguards.
Bridging the life insurance coverage gap for non-salaried UK workers is crucial for ensuring financial security.
