Swiss Re has just launched its ninth report into insurance, called A Gap In Protection.
The report claims that there is a huge gap in the cover people have, as opposed to the cover they think they have for life insurance and income protection.
Last year's report from Swiss Re claimed there was a £130bn gap in income protection and a massive £2trillion gap in life insurance. These figures have apparently increased to £150bn and £2.2trillion respectively.
Our View
Having the right amount of life and income protection is vital if you and your family are to be protected, should the worst happen. Many working people have life insurance provided by employers and might even get their salary paid for upto 12 months, if they were off sick. But, many workers get nothing.
Everyone should assess their situation and understand what they would lose on death or long-term illness. It is then time to decide on the maximum amount of cover that is affordable.
Most importantly, review your protection requirements as and when your circumstances change.
Life and income protection is relatively expensive but exceptionally valuable.