Somewhere in the background of this busy, demanding phase of life is a financial safeguard that’s too important to ignore – life insurance.
With Insurance Awareness Day having recently passed (28 June), it’s a timely moment to stop and ask yourself – do I have the right protection in place for my unique needs?
Do you have the right cover?
Many people in their 30s, 40s and 50s already have some protection in place, often taken out when buying their home, but over time, life changes. The size of your mortgage, the number of dependents, your income and your financial responsibilities all evolve. So, what was once ‘enough’ may no longer be the right type or level of cover.
Recent research1 reveals that only 43% of people have adequate life insurance. Among mortgage holders, just 36% are properly covered and among families with children, the numbers are even lower with only 30% of couples and just 10% of single parents, having sufficient protection.
The so-called ‘squeezed middle’ – people like you, with the most financial demands – are often the ones with the least robust financial safety nets in place.
It’s about having a plan
No one likes thinking about what could go wrong, especially when you’re already juggling so much, but that’s exactly why life insurance matters. It’s about making sure your loved ones are financially secure if something unexpected happens.
Would your family be able to cover the mortgage, childcare or education costs and rising household expenses on one income, or none at all? Life insurance can help ease the financial burden, providing a lump sum to support your family when they need it most.
While many people think about covering their mortgage, fewer consider the broader financial impact – day-to-day living, future or current education costs and maintaining a stable home environment.
If you don’t have children, life cover can still be just as important. If you have a partner, shared debts or family members who rely on you financially, the impact of your absence could still be significant. Life insurance can help cover outstanding loans, funeral expenses or simply give loved ones time and space to manage their grief without immediate financial pressure. It’s about protecting the life you’ve built together and ensuring those closest to you aren’t left facing unnecessary hardship.
“I already have cover” – that’s great, but…
Having cover is good news, but when was the last time you reviewed it? If your policies were set up years ago, they might no longer reflect your current income, mortgage size or family needs. In some cases, people are paying for cover that’s no longer appropriate or missing key benefits altogether.
How about your nominated beneficiary? You must review this too, don’t risk a situation where a life insurance policy is paid to an ex-spouse or partner.
Protection that doesn’t break the bank
Life insurance can be more affordable than many people assume. With a wide range of options available, it’s possible to find cover that fits your needs without adding unnecessary costs.
It’s not about over-insuring or complicating your finances, it’s about making sure your family has the support they need if life takes an unexpected turn.
There’s also a place for other types of protection, such as critical illness cover, which can provide a lump sum if you’re diagnosed with a serious health condition, while income protection replaces a portion of your salary if illness or injury stops you from working. These can be valuable additions to your financial plan too. You may already have these in place, but are they still appropriate for your needs?
Let’s take stock
Your financial planner can help you review your current cover, identify any gaps and make sure your life insurance still meets your needs. It doesn’t have to be time-consuming or complicated, and the peace of mind is more than worth it.
If it’s been a while since you looked at your protection, now’s a good time. Let’s make sure you and your loved ones are properly protected, whatever life throws your way.
Financial protection policies typically have no cash-in value at any time, and cover will cease at the end of the term. If premiums stop, then cover will lapse. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
1HL, 2025
Sources
Insurance Awareness Day | Awareness Days
30+ UK Life Insurance Industry Statistics | Invezz
The Income Protection Gap in the UK – Shepherds Friendly
‘Squeezed middle’ falling into protection gap