Almost three quarters (72 per cent) of over 50s do not have life insurance, research from OneFamily has revealed.
The research pointed out that this equates to 20.2mn people over the age of 50 not having life insurance.
Additionally, it showed that nearly half (44 per cent) of those with over 50s life insurance purchased the product for funeral cover.
Just 19 per cent of over 50-year-olds said their funeral could be fully or partially paid for by life insurance.
However, it was also reported that more than 8mn of those over 50s have not put any money aside to specifically cover their funeral costs, with 13 per cent admitting they don’t know how their funeral will be paid for.
An additional 14 per cent would be leaving their family to use money from the sale of their assets for a funeral and 3 per cent would rely on loved ones to pay.
With funeral costs continuing to increase, the research suggested that it is “perhaps no surprise” that one in 10 (9 per cent) are now choosing not to have a funeral.
For those that do have over 50s insurance, 12 per cent of people said no medical review was a priority when choosing a provider while almost a third (28 per cent) said the biggest consideration was cost.
OneFamily head of customer service and direct sales, Jackie Davies, said: “With concerns over the cost-of-living crisis continuing, it’s not surprising people have reservations around finding the spare cash for over 50s life cover.
“Understandably, one in five don’t want to think about getting older and funeral arrangements, but this will only push the worry onto their loved ones when the day comes.”
Davies also stated that low premiums and funeral funding being paid out directly to chosen funeral providers could leave families with one less thing to worry about.
It could also give them “peace of mind that their loved one’s funeral is taken care of”, she added.
tom.dunstan@ft.com
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