The UK faces a “life insurance equality gap” as non-salaried workers are 17 per cent less likely to have cover than those with salaried jobs, research from Beagle Street has revealed.
The research, which surveyed 2,000 people between the ages of 18 and 50, found that just 33 per cent of non-salaried workers, such as freelancers, self-employed people, and those on zero hour contracts or hourly pay, have life insurance.
This is “significantly” less than the 50 per cent of salaried workers with life insurance.
Beagle Street director of protection, Ryan Griffin, said: “It’s clear there is a life insurance equality gap between those who have salaried jobs and those who don’t.
“However, those in non-salaried work may benefit from having cover the most, particularly as they are unlikely to have the same death in service benefits that people in salaried jobs receive from their employer.
“It’s vital that everyone who could benefit from having life insurance, can access it. Not only this, but there must be affordable and accessible options that work for people and their families.
“Advisers play a key role in helping people find the protection that suits their needs and we value the support they give to those looking for cover that is right for them.”
Of those in non-salaried work without life insurance, the most common reason for not having it is that they cannot afford it, with 25 per cent saying it is beyond their means.
This is in contrast to the 19 per cent of salaried workers who said they cannot afford it.
However, nearly two thirds (64 per cent) of non-salaried workers without life insurance say they are concerned about not having cover.
This includes being worried their family or friends might not be able to pay for their funeral, which was mentioned by 16 per cent of respondents.
Additionally, 14 per cent of respondents were worried that their family will inherit financial burdens such as loans and mortgages, and 14 per cent were worried their family will not have the same quality of life if they passed away.
tom.dunstan@ft.com
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