Living together before marriage may seem like a smart way to test drive a relationship but new research published today by Hibernian Aviva Life & Pensions reveals cohabitation is potentially a one-way road to financial trouble and insecurity.
- 45% of Ireland’s cohabiting couples rely on the income of both partners and would suffer serious financial problems if one of them became seriously ill
- 25% of cohabiting couples admit they would be left with a serious financial problem if one of them died unexpectedly.
Living together before marriage may seem like a smart way to test drive a relationship but new research published today by Hibernian Aviva Life & Pensions reveals cohabitation is potentially a one-way road to financial trouble and insecurity. The new research reveals 45% of Ireland’s cohabiting couples rely on the income of both partners and nearly 40% of these couples admit they would have serious financial problems if one of them became seriously ill and was left with only one income to rely on. With cohabiting couples comprising almost 12% of the population in Ireland, there is a real need for cohabiting couples to safeguard their future.
Interestingly, cohabiting couples under 35 are even less likely to financially cope if an unexpected illness or disability strikes as 46% of young cohabiting couples admit to suffering serious financial problems if one of them became seriously ill. A further 25% of cohabiting couples admit they would be left with a serous financial problem if one of them died unexpectedly.
Commenting on the research findings, Gareth McQuillan of Hibernian Aviva Life & Pensions said: “The research reveals a real need for Ireland’s cohabiting couples to safeguard their future and take out some insurance against the possibility of being struck down by illness or death. Furthermore, the latest census figures indicate that cohabiting couples now comprise almost 12% of all families in Ireland – an increase in 4% since 2002 – so for the increasing number of unmarried couples financial protection is crucial to avoid financial misfortune when dealing with an unexpected illness, disability or death.”
“Life assurance and specified illness cover are one of the few ways unmarried couples can financially protect one another in the event of sickness, disability or even death taking place. In the event of death or if you are diagnosed with a specified illness or become totally and permanently disabled you will receive a guaranteed cash sum to help support you and your partner, so life assurance and specified illness cover really makes financial sense,” continues Gareth McQuillan.
The Hibernian Aviva Life & Pensions research also reveals cohabiting couples are not the only ones neglecting protection. A staggering 72% of divorced or separated couples admit to not discussing the need to safeguard spouse and child maintenance payments in the event of death.
42% of families also admit there would not be sufficient life assurance in place to safeguard the family’s current lifestyle if an unexpected death took place and a further 52% of families say they would rely on savings to try and replace lost income if the main income earner became ill or disabled.
To help consumers safeguard their future and understand the importance of protection, Hibernian Aviva Life & Pensions has launched a new, easy to use protection guide. Entitled, "The Facts of Life", the guide tells consumers some important facts about life assurance and specified illness protection and how they can safeguard their future. Some of the top protection tips in "The Facts of Life" include:
Think about why you need protection – Life assurance and specified illness cover insures your life and ensures the financial security of your loved ones in the event of illness, disability or death. It is so important to take the time to think about what is best for you and your family and how much coverage your family needs to handle these unexpected events.
Decide how much cover you need – Talk to your financial advisor and determine how much coverage your family or loved ones will need if you or your partner dies. This will help you ensure that after paying off debts and regular bills, you and your family could maintain the same standard of living if you or your partner dies.
Talk to a financial adviser – A financial adviser has the expertise to explain how protection works and will help you decide what cover is right for you and your loved ones.
Commenting on the new guide, Gareth McQuillan of Hibernian Aviva Life & Pensions said: “The Facts of Life helps consumers understand the importance of including life assurance and specified illness cover as part of their financial plan. It includes real life stories and case studies of people who have experienced the benefits of protection so consumers can have a greater understanding of the difference protection can make in their life and the lives of their loved ones.
“The guide also includes a protection calculator to help consumers calculate how much coverage is needed. Life assurance is one of the few ways Ireland’s consumers, whether they are married divorced or living together, can safeguard their future and ensure the financial security of their loved ones,” continues Gareth McQuillan of Hibernian Aviva Life & Pensions.
A copy of "The Facts of Life" is from your financial adviser or from any one of Hibernian Aviva’s 27 branches located throughout the country.
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Notes to editors:
Research was carried out by Behaviour & Attitudes and included a sample of 1,000 adults.
About Hibernian Aviva
Hibernian Aviva has been part of Ireland’s insurance industry for the last hundred years and has grown to become one of the largest and most successful organisations in the country with businesses in General Insurance, Life & Pensions and most recently the health insurance sector.
Part of the world’s fifth largest insurance group Aviva plc, the company has approximately 1.2 million customers in Ireland and offices in Dublin, Cork and Galway with a branch network in 27 other locations.
Aviva is the world’s fifth largest insurance group, serving 50 million customers across Europe, North America and Asia Pacific.
Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £51.4 billion and funds under management of £381 billion at 31 December 2008.