Compared to other countries in Europe and the US, Brits are among the least likely to take out life insurance, and it could leave their families in a vulnerable position if the worst happened.
Life insurance would pay out a lump sum to your beneficiaries if you passed away during the term. Your loved ones could use the money however they wish, including paying off an outstanding mortgage to improve their financial security. As a result, it’s something many homeowners, particularly those with dependents, could benefit from considering.
Yet, findings from CRIF (11 July 2024) show that under a third of people (31%) in the UK had insured their own lives. This is well below the global average of 43%.
One of the reasons Brits may be reluctant to take out life insurance is the prevalence of myths. So, read on to find out more and why you might want to reconsider whether life insurance is right for you.
Myth 1: Insurers don’t pay out
You take out life insurance to provide your family with financial security if you pass away. So, if you don’t believe that insurers would pay out, it’s easy to see why you might decide life insurance isn’t worthwhile.
However, the figures clearly debunk this myth.
According to data from the Association of British Insurers (14 July 2025), 96.5% of life insurance claims made in 2024 were upheld. The average claim paid almost £80,000 to grieving loved ones.
Myth 2: I’m too young to need life insurance
No one wants to think about passing away, so it’s common to think it won’t happen to you or that it isn’t something you need to consider yet.
While passing away young is rare, accidents and illnesses can happen at any stage of life. If your death could leave your dependents in a vulnerable position, you might want to consider whether life insurance or another form of financial protection could offer you peace of mind.
Myth 3: I have cover through work, so I don’t need it
Some workplaces offer life insurance as a workplace benefit. Typically, this would pay out three or four times your salary to your family if you should pass away while employed by the business. The payout and conditions of group life insurance can vary, and you should check your contract for further details.
While this benefit is a good start, it might not cover all your family’s needs.
Imagine the potential payout through your workplace insurance is £150,000, and your outstanding mortgage is £250,000. Your family could face a shortfall if you pass away. So, you might opt to take out additional life insurance that would pay out £100,000 to bridge the gap.
Myth 4: I don’t need life insurance because I’m not the main earner
While life insurance can provide a lump sum to cover the expenses if the household’s main earner passes away, there are other reasons to take out cover too.
For instance, if a partner is a primary carer for children and they pass away, life insurance could be used to allow the surviving partner to take time away from work or cover childcare costs over the long term.
Myth 5: I can’t get life insurance because of a pre-existing medical condition
A pre-existing medical condition may affect the cost of cover, and you might benefit from seeking a specialist provider, but it is usually possible to take out life insurance.
It’s important to disclose pre-existing medical conditions and be honest about your health when taking out life insurance. Inaccurate information or non-disclosure could lead to claims being denied.
Myth 6: Life insurance is expensive
The perceived cost of life insurance puts off some people from finding out more. Yet, it could be cheaper than you expect.
According to a MoneyWeek article (20 November 2025), on average, people overestimate the cost of life insurance by 184%.
Numerous factors will affect the cost of your life insurance, including the level of cover and your health. Shopping around could help you find the right deal for you, though it’s important to check exactly what will be covered – a cheaper deal that isn’t as extensive might not provide you with the cover you expect.
Contact us to talk about financial protection
If you’d like to discuss life insurance or other types of financial protection and whether they’d be appropriate for you, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Note that life insurance and financial protection plans 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.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
