Scottish Widows is encouraging financial advisers to help couples take a fresh look at their finances in 2023, as it has found Brits in unmarried relationships are not financially prepared if their partner dies.
The 2,000-person survey found 43% of unmarried couples will lose out on their partner’s life insurance pay out because they haven’t made the right arrangements.
Only half of unmarried adults who are in relationships (52%) know whether their partner has a life insurance policy, and more than a quarter of those who do know (27%) are unaware of the policy’s value.
In addition, more than a third of couples (34%) admit they rarely discuss long-term financial planning because they see it as unnecessary, awkward, or simply too difficult.
This increases to 40% among over-55s.
There is also a lack of awareness when it comes to expectations and preparations needed to receive financial protection. Among married people who live with their partner, 19% would expect to receive life insurance pay out, despite 14% knowing that their partner had definitely put plans in place for this.
Rose St Louis, protection director at Scottish Widows, said: “Our research has shown that unmarried couples find it difficult to talk about planning for the worst and proactively avoid it as they don’t feel it is important. However, despite being difficult to discuss, there is an urgent need for transparency to ensure long-term security.
“As marriage rates continue the decline, financial advisers have a crucial role to play by supporting couples sensitively through this process and ensuring they understand the different protection offered to them. Helping to facilitate these conversations so they can handle the issue sensibly and sensitively is an integral part of professional advisers’ role in today’s society.”
