Average Brit takes risk by delaying life insurance decision by 10 months

While it’s important to weigh up your options before making financial decisions, a study suggests families are leaving themselves open to risk because they delay making a judgement about life insurance.

According to a January 2025 report from the Post Office, the average Brit takes more than 10 months to sort out life insurance, and a third said it was on their to-do list for more than a year.

Life insurance would pay out a lump sum to your beneficiaries if you passed away during the term. It could provide an essential cash injection when your loved ones need it most. The money can be used how they wish, such as paying off a mortgage, covering education costs for children, or taking time away from work.

So, while it’s a decision that’s important to get right, it’s also one you don’t want to put off, as doing so could leave your family in a vulnerable position.

3 reasons to review your life insurance options now

If reviewing life insurance options is a task you’ve been putting off, here are three reasons to make it a priority.

1. You don’t know what’s around the corner

It’s impossible to predict what the future might bring. By delaying taking out appropriate life insurance, your family could find there’s a gap in your financial plan when they need it most.

If your loved ones would struggle financially if you unexpectedly passed away, life insurance could provide them with some security while they grieve.

As well as life insurance, you might also want to consider other types of financial protection.

For example, critical illness cover may provide you with a lump sum if you’re diagnosed with a serious illness or income protection could provide you with a regular income if you’re unable to work due to an accident or illness. Appropriate financial protection could improve your financial resilience and mean you’re in a better position to overcome shocks.

2. Being proactive may offer you peace of mind

One of the reasons some families might delay life insurance is the emotional challenges of thinking about the circumstances in which it would be needed.

However, some people find comfort in knowing that, should the worst happen, their family won’t face financial hardship as a result.

If you worry about how your family would cope financially without you, life insurance may offer you peace of mind.

3. Completing to-do tasks could boost your wellbeing

The Post Office study found that 63% of people feel “weighed down” by their to-do lists and half said they feel overwhelmed by them.

So, ticking something off your list could provide an instant boost to your mood and wellbeing.

The questions that could help you choose the right life insurance for your family

• Do you have any existing life insurance?

If you already have life insurance, reviewing your current cover is a good place to start. Your circumstances may have changed since you took it out, so it may be worthwhile reviewing if it’s still appropriate for you.

You might also have some form of cover that you didn’t directly take out. For instance, your employer may have a death in service benefit.

If you find your current protection isn’t enough, you may choose to complement it with additional life insurance.

• How long should the life insurance last?

You can set how long you want your life insurance to last. Many families tie the time frame to milestones, such as when children reach adulthood or when their mortgage will be paid off.

Alternatively, you might choose whole-of-life insurance, which gives you cover for your entire life.

• What level of cover do you need?

To take out appropriate life insurance, you need to understand the financial challenges your family would face. For some families, a payout that will cover debt is enough, while others will want to ensure it can replace a regular income in the medium and long term.

You may also choose a life insurance policy where the potential payout decreases over time. The payout often decreases in line with your expectations of debt falling, such as your mortgage.

• Are there additional features that could be valuable to you?

Some providers may offer life insurance with additional benefits that could be valuable to you. For example, some will cover your children or would payout if you were diagnosed with a terminal illness.

Considering if any additional features could be beneficial may help you compare life insurance options.

• What premiums will you pay for life insurance?

The cost of life insurance will depend on a variety of factors, from the level of cover to your health. The cost can vary between providers, so shopping around could help you find the right deal for you.

While you might want to reduce costs, be sure that choosing a cheaper option that’s less comprehensive doesn’t leave gaps in your financial protection.

We can help find the right life insurance for you

When asked why they were putting off important life admin tasks, participants told the Post Office survey:

• They lacked time (35%)
• There was too much information to process (30%)
• Reading complicated instructions was off-putting (27%).

The good news is that you don’t have to review your life insurance or wider financial plan alone, we’re here to help. We’ll take the time to understand your needs and explain the different options, so you can feel confident about your and your family’s financial security.

Please get in touch to talk to us about how to protect your family and manage your finances effectively.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Note that life insurance 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.