Kicking the bucket. Cashing in your chips. Going for a Burton. Heading to the great gig in the sky. Whatever you like to call it, death is a daunting subject few of us are fond of talking about. Our profound discomfort when it comes to discussing the “destination we all share” (Steve Jobs) also means we procrastinate or avoid things that focus on it.
Take life insurance. Many of us would feel hugely reassured knowing that, should we pass on, loved ones would be financially secure, even enjoying the same living standards as they did before. Yet, our unwillingness to broach our departures (spoiler alert: it will happen) also means there are some widely held misconceptions about life insurance. Here, the Guardian and Aviva embark on a debunking mission to separate fact from fiction …
Myth 1: Life insurance is only for homeowners
One of the few things people know about life insurance is that many policies pay out enough cash for your loved ones to settle the remainder of your mortgage when you pass away, meaning your partner and/or dependents needn’t fret about meeting monthly repayments.
With 81% of renters having no protection insurance whatsoever, many non-homeowners are possibly unaware that life cover could also cover rent payments in their absence, too, easing the financial strain for loved ones.
Myth 2: We don’t have any kids, ergo we don’t need life insurance
It’s natural that child-free couples might question the importance of life cover. After all, many insurance policies are geared around ensuring families are looked after once the breadwinner has passed away. But taking up a policy can help, particularly if you have any mortgage debt that you don’t want to saddle your partner with.
Myth 3: I won’t be able to get life insurance because of health issues I’ve had in the past
Just because you’ve previously suffered poor health, it doesn’t mean you’re persona non grata to insurers. The chances are, you will be offered cover, whether you’ve undergone treatment for cancer, or taken long-term sick leave. Aviva (which accepts approximately 96% of its insurance applicants) will, for example, offer you cover if you have diabetes.
Myth 4: Life insurance is expensive
Wrong! Life insurance costs considerably less than most people think. At Aviva, you can take up life insurance from just £5 a month.
There’s good news for clean-living fitness freaks, too. As the cost of life insurance is linked to your state of health, if you’re in good shape (translation: don’t smoke like a chimney or adopt a diet that leads to future coronaries), your quote will reflect that.
Myth 5: I’ll be drowning in paperwork
Getting life insurance today can take as little as five minutes online. And don’t worry about insurance professionals digging into your personal life by asking questions about your dangerous base-jumping hobby either. At Aviva, it could take as few as five simple questions before you’re covered.
As for wading through impenetrable legalese or having to badger your GP for medical records, if more information is required the insurance company can do this for you.
Myth 6: Insurers never pay out
Another fallacy. In 2017, Aviva paid out 98.9% of all life insurance claims against the group. More than £525m was paid out to the families of life insurance customers who had died, or to customers diagnosed with a terminal illness.
Myth 7: I’ll be paying higher premiums because I used to smoke
Yes, smokers pay more for life insurance. But a cursory glance at the statistics reveals why: the lung-blackening habit accounts for nearly 80,000 deaths in England every year, with one in two smokers dying from a smoking-related disease.
Just because you used to smoke, doesn’t mean your premiums will increase. Aviva will take into account when you gave up smoking and whether you have any smoking-related conditions, rather than arbitrarily increasing your premium.
Aviva offers life cover from just £5 a month, so life insurance is less daunting than you may think, with flexible cover length, lump sum payouts and a hassle-free claims process. For more information, visit aviva.co.uk/life
