Britons aged over 50 are struggling with the rising cost of insurance with nearly two-thirds (63%) worried about how much they are paying in premiums, according to a study of 1,000 over-50s by financial mutual Scottish Friendly.
It also found that nearly half (48%) are paying more than they were 12 months ago.
The two most common types of insurance among over 50s are home or contents insurance (80%) and buildings insurance (62%). This is followed by life insurance (34%) which is typically held in the form of whole of life cover (33%) or over 50s life insurance (31%).
Despite worries about the rising cost of insurance, nearly two-thirds (63%) of respondents with an over 50s life insurance plan say it has become more important because the cost of living crisis is putting families under greater financial pressure.
The majority (57%) of over 50s take out a plan to cover the cost of their funeral, while 46% do so to help provide for their family financially if they pass away. An added worry for nearly half (46%) of respondents, is that the value of their plan will be less than they hope.
But for many over 50s, putting away more money for their family in event of their death may not be an option. The majority are likely to be on fixed incomes as shown by the fact that only 27% of survey respondents are in full time employment. 22% are hoping to find ways to boost their regular income in the next six months. Paid overtime (9%), second jobs (4%), salary increases (3%) and selling of investments / stocks (3%) are expected to be the most likely sources.
If the pressure on incomes grows, more over 50s are potentially at risk of being unable to meet their monthly premiums.
Jill Mackay, head of marketing at Scottish Friendly, said: “Insurance inflation is a real concern for many over 50s and is adding to their woes during the cost of living crisis.
“Coping with rising premiums is particularly challenging for individuals on fixed incomes who have fewer options to boost their earnings.
“However, despite the short-term pressure many over 50s are under, it is reassuring that plenty are taking appropriate action to support their families in the event of their death.
“By paying regularly into an over-50s life insurance plan, they are doing all they can to help protect their families and ease any potential financial pressures further down the line.
“There is also more support now from providers with unique products that offer customers greater choice and flexibility, and help reduce the risks if people do miss a payment.”
