Had enough of the family over Christmas and New Year? You’re not the only one. Data from Co-op Legal Services shows that for some people, keeping it lean this January may also include cutting beneficiaries out of their will.
Whether it’s down to Christmas conflicts or new family arrivals, Co-op saw a 71% increase in will amendments in January 2017, compared to the previous month.
The dramatic rise in alterations is considered to be partly down to increased time spent with family over Christmas, leading to a reconsideration about who will be receiving what, as well as a focus on getting affairs in order for the New Year. As well as changes to existing wills, Co-op Legal Services also saw a 58% increase in the number of new wills taken out in January 2017 compared to December the previous year.
One third of Co-op’s wills business now comes from its online channel (35%) and data from the provider of later life products and services reveals that there is still a huge financial planning gap to close in 2018.
Across the UK 45% of UK adults do not have any will at all.
Of the 55% of adults who do have a will, many admit to never having updated their will, meaning that it could be ineffective.
84% of UK adults don’t have a Lasting Power of Attorney.
93% of UK adults have yet to make a funeral plan meaning their families will be exposed to rising funeral costs and uncertainty about their loved one’s wishes in the future.
There is a huge opportunity for UK insurers to transform the old fashioned image of life insurance in general. It has become the Cinderella of the insurance sector, something that people are incredibly reluctant to deal with, even if they own property with an outstanding mortgage on it. A survey in 2017 found that two thirds of UK adults either have no life cover, or cannot recall taking it out.
A life insurance policy can also help pay for a funeral too, which means the potential £6000-£15,000 cost of a send off is NOT passed onto your family.
The life sector in the UK is a vast, untapped market, ripe for disruption. The companies who develop easy-to-use apps and market life cover as essentially being about caring for others, utilising today’s virtue-signalling social media platforms, should be able to win thousands of new customers.