"Major milestones such as putting a deposit down on a house would forever be out of reach for a great number of people without this sort of bequest"
- Kevin Pratt - Forbes Advisor
Brits are anxious about hitting major financial milestones in life without receiving some kind of inheritance from a family member or a loved one.
For example, more than a third (37%) of Brits worry about the feasibility of saving up for a deposit for a house without any kind of inheritance. When breaking the results down by age, this increased to 50% of those aged 34-54.
The data, collated by financial guidance and price comparison platform, Forbes Advisor, shows that 20% of Brits who were able to save for a mortgage deposit were helped by some form of inheritance, such as a monetary gift from a family member or loved one, a payment from a family member's estate after their death, or a life insurance policy payout.
An inheritance of some kind can help people get closer to their financial goals, but not all can look forward to this boost. The survey found that 57% aren’t currently expecting any sort of inheritance, and 14% are not sure if they are due to receive anything.
However, some of those expecting an inheritance might not currently consider buying a home their first priority. When asked how they would spend an inheritance, 36% of respondents plan to put it in a regular savings account, 21% would spend it on a holiday, while only 10% say they will use it for a mortgage deposit.
32% of Brits are worried about hitting major financial milestones, such as a first mortgage, wedding, or even their own retirement, without external financial help such as an inheritance. The study also revealed that the prospect of an inheritance can be greatly reassuring with those expecting to inherit nearly 50% more likely to feel better about their financial outlook over the next 10 years.
Regardless of whether or not they are expecting an inheritance, 20% of Brits are not confident they will be able to leave anything behind for their own families when they die. Yet despite this, just 12% have a term life insurance policy in place, which could guarantee a stated cash payment in the case of premature death.
Kevin Pratt, life insurance expert at Forbes Advisor, commented: “It’s never comfortable to think about one’s own death or the death of a loved one, but the movement of wealth between generations in the form of inheritance is a key part of financial life for many of us. Indeed, major milestones such as putting a deposit down on a house would forever be out of reach for a great number of people without this sort of bequest.
“Not all of us have a pot of money to pass on, but this is where life insurance can help. With term insurance, you can arrange for a stated sum to be left to your loved ones in the event of your premature death within a certain time span. This can be used to take care of debts and ongoing bills, and possibly to provide a cash sum for any purpose. With a whole life policy, which will pay out whenever you die, you can make detailed plans about passing on wealth to those you leave behind.
“It’s certainly worth giving life insurance some serious thought, as it is an effective way to deal with the anxieties and hopes of those who have dependents they want to look after financially.”