Sky TV more important than life insurance

by John Fitzsimons on 02 February 2012  |  2 comments
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Guest blogger Louise Colley of Aviva looks at the big risks many families are taking by ignoring insurance in favour of Sky TV.

It’s no secret that the cost of living is getting more expensive. We keep hearing that inflation is rising, and increases to the price of goods and services has meant that families in particular are feeling the pinch.

Now, with Christmas bills filtering through, many families are currently reviewing their finances with some apprehension. On top of debt repayments and increases to the price of other essentials – food, housing  and energy bills – there are rising transport and childcare costs to think about. And then there is the question of how to pay for entertainment, recreation and all the other things which make life more fun.

This means that those who are feeling the strain may need to address their finances and prioritise some areas of spending while perhaps cutting back on others.

Breaking the money taboo

This is easier said than done. People have different priorities, so just how to cut one’s cloth can mean difficult decisions for most families. Research revealed in Aviva’s most recent Family Finances Report found that money is a taboo subject for many people. In fact the only topic of family conversation that’s more of a no-go than money, is sex!

Getting our priorities right

The same research found that more families in the UK currently have a satellite television package (50%) than have life insurance (40%). So should the unthinkable happen and an income earner pass away their family will not only have to deal with this tragedy, but they will be left to cope with the normal monthly bills without the income to pay them.

The report also found that families are more likely to have insurance for their mobile phone (14%) than insurance that would provide financial support in the event of a critical illness. In addition, more people have taken out an extended warranty on electrical items than have income protection insurance (10%), which could potentially pay an income for life should they become unable to work as a result of an accident or illness.

One of the standard answers as to why people don’t have protection insurance is that they can’t afford it – 19% of families cite the cost as the main reason – but in many cases this is not necessarily true. The average monthly amount paid by the survey group for a satellite television package was £35.75, whereas the average amount they paid for a life insurance policy was £20.88.

It doesn’t take an expert to see there is a substantial difference in price between the two. People need to ask themselves how they would pay their debts, their accommodation costs, their food bills and all the other costs of living should they suddenly lose an income.

No-one likes to dwell on poor health or mortality but by not putting measures in place to protect their loved ones they are putting them at financial risk. At the end of the day, the question to ask is ‘what price is peace of mind?’ Is it more than movies on demand?

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