'Awkward' conversations stop Brits talking about finances

Sex is the only subject more taboo than finances for UK families as many find the conversations too awkward and uncomfortable, a new report has revealed.

It argued that as a result people are putting luxuries ahead of protecting their loved ones and securing their financial security.

The Aviva Family Finances Report also identified that many people prefer to insure electronics or mobile phones than themselves.

However the most revealing result was that families are avoiding the issue of what they would do if something happened to an income earner, because they find discussing their finances and mortality ‘uncomfortable', despite the potential emotional distress caused by not having protection.

More than a quarter (27%) of families admitted they would not want to discuss their debts with their family, and 24% would not even discuss their general finances.

The only topic that makes families more uncomfortable than finances is sex (56%).

Half of respondents (50%) were happy to pay for a satellite television package but just 40% have life insurance.

This is further highlighted by mobile phone insurance (14%) and extended warranties (13%) being more popular than critical illness (13%) or income protection (10%).

While the current economic climate has affected spending patterns, it has not increased the likelihood of taking out insurance.

The two most important financial measures Britons plan to take this year are cutting back on their spending (39%) and paying off their debts (35%), but more families are prioritising booking their annual holiday (21%) than are planning to buy life insurance (3%).

Louise Colley, head of protection sales and marketing at Aviva, said: "No-one likes to dwell on poor health or mortality, but by denying that illness - or worse - is even a possibility, people are stopping themselves putting measures in place to protect their loved ones.

"Too many people assume that someone else will step in and look after their families if they weren't there to provide for them, but the reality is very different.

"People need to ask themselves just how they would pay for their accommodation, their food, and all the other costs of living, should they suddenly lose an income," she added.