The average household in the UK is 24 days from the bread line. Far shorter than the 90 days they believe, with almost all households worrying about losing their income if they are unable to work, yet having less than £3000 in savings, even though the amount needed to feel secure is around £12000.
In-fact, 1 in 5 have no savings at all and 2 in 5 have less than £1000!
Households don’t see the need for income protection. We are 4 times more likely to insure our pets, and we are 6 times more likely to insure our home contents with 31% saying they don’t need it at all.
Surprisingly, when unprompted 35% think nothing will stop them working, showing that illness affecting our ability to work is not front of mind in our day to day lives. However, when prompted almost half realise an illness could affect their ability to work.
Even so, only 1 in 5 said they may buy income protection, 1 in 3 don’t see the need and do not associate it with losing income due to incapacity, or being able to support their family.
WHAT WOULD YOU RELY ON??????????
1 in 3 think they can rely on savings but it would take the average working household 4 years to save what the feel they need to feel financially secure and 14 years to save their gross annual salary.
For 1 in 3, their plan B involves relying on family and friends, but more than half admit they could not offer regular financial support. 28% believe their employer would support them through serious illness but with little understanding and clarity for how long or how much. And 1 in 5 think the state will provide the support needed, though many are unsure exactly how much this would be!
Despite the awareness of the impact a loss of income could have on their financial resilience only 1 in 10 see themselves as their most valuable asset….
An asset that could be protected!
Wake up to income protection and see how we can protect your most valuable asset.
Email firstname.lastname@example.org to find out more!