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Families under-insure by almost £180,000

06 March 2008 Breaking News

UK families are under-insured by £2.5 trillion, equating to a total shortfall of £176,776 for the average family, AXA has found.

The survey of 4,009 adults across a sample of 10 major economically developed countries also found that the UK is the second most indebted nation after the US, with 64% of UK adults having loans compared to 70% in the US.

It concluded that almost three quarters (72%) of UK adults are under-insured by an average £96,927. Despite this, more than one in three (38%) felt they were very well insured against life risks and 36% believed they were reasonably insured.

Of those who said they were very well insured, 40% were found to be under-insured by £29,530. A further 76% of those who considered themselves to be somewhat insured had a protection gap of an average £145,868.

Iain Mallon, head of protection at AXA, said: "The study reveals that the average family would be left facing a massive financial shortfall should the worst happen and one or both parents die."

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