Life and Critical Illness Bulletin: Protecting Generation Rent
20th February, 2017
With people renting for longer as a result of upward pressure on house prices, more focus has been placed on unprotected tenants. Research has revealed that due to a lack of protection, millions are vulnerable to being evicted and financial difficultly.
Many people’s first interaction with protection is during the house buying process. But now people are doing this later in life, which has left “Generation Rent” susceptible to not being covered long term, in the event that they are unable to work.
A study by provider Scottish Widows showed that nearly one third admitted they would not be covered if the breadwinner lost their income. Despite this, only 16% had life cover, with only a worrying 3% having critical illness. 35% even admitted to paying very little attention to ensuring they would be able to pay rent in the event of long term absence from work.
AIG go beyond the claim
AIG have announced that they will be going “beyond the claim” when it comes to protection. They want to support policyholders and their loved ones further during an already stressful time. AIG already has a dedicated and experienced claims team to support and guide policyholders and their loved ones through the claims process.
But AIG want to do more than just pay the life insurance claim. In the event of the policyholder’s death, one of the most pressing concerns for family and friends is paying for and arranging the funeral. Funerals are expensive, which is why AIG provide discretionary financial support to families who are burdened with bills, once a claim has been agreed in principle.
To get the word out, AIG have joined the Protection Distributors Group’s Funeral Pledge, an initiative to encourage providers to pay part of claims upfront to cover funeral costs. AIG have decided to go further than the minimum £5,000 promised though the pledge, and have announced they will advance up to £10,000 of the sum assured.
Royal London reveals state of the nation
Royal London has revealed their latest findings in their State of the Protection Nation survey. The study showed that perception is still leading the way as a barrier to buying cover, even if it protects them from financial hardship if the worst was to happen.
With only a quarter of adults surveyed with life insurance and only 6% with a critical illness policy, clearly more work needs to be done to bridge the gap and protect more of the nation. Although the most common objection to purchasing protection was still cost, necessity and reliability were also common barriers, despite claim statistics and premium costs showing how this is by and large not the case.
To learn more about protection or just want to find out how affordable it can be, give us a call on 0800 024 8685 or browse our quotes page to see more of the great offers available.