Recent research conducted by Royal London has underlined how numerous people across the UK are putting themselves at financial risk by not investing in a personal protection policy that suits their needs.
According to their study, 5.8 million renters in the United Kingdom don’t have a ‘plan B’ available should they or somebody in their household become too ill to earn an income for three months or longer to cover their rent. 48% of those surveyed also say that they simply ‘have never thought about’ how they would cope financially should a serious illness impact their careers.
More worryingly, the survey also suggests that 39% of working renters have no savings to their name compared against 23% of the wider population. 58% of those renting also say they have less than £2,000 in savings. A personal protection policy could be exactly what they need to better safeguard their futures.
Why renters should consider a personal protection policy
That’s put in stark contrast too when considering the amount of debt that renters have accrued. The average amount of debt that renters have accumulated stands at £4,600, with 14% of those surveyed owing more than £10,000.
So, what would renters do if they did contract a serious illness and found themselves unable to work for a period longer than three months? Nearly half of those surveyed – 48% – said they would turn to state benefits. Downsizing is a popular option; 45% would reduce their overall household expenses while 36% would feel compelled to use their savings to survive.
Tellingly, only 4% said they would consider using an insurance policy that offers income protection while only 17% would choose to speak to a financial advisor if they were facing troubling times.
These figures not only paint a worrying picture for renters (especially younger workers who have aptly been named ‘Generation Rent’ due to a volatile housing market) but for residents across the UK too, who are denying themselves a viable safety net with personal protection insurance should their careers and earnings potential be put in jeopardy following an accident or serious illness.
Working with an expert provider in personal protection insurance
There may be all sorts of reasons why people don’t feel the need to take out personal protection insurance. Chief among them may revolve around the negative connotations surrounding the option, better known as PPI, thanks to it previously being mis-sold on a mass scale by banks, building societies and credit card providers.
Personal protection insurance, though, can be incredibly beneficial to people and act as a protective strategy for anybody and everybody in employment who worries what the future may hold for them should they ever experience bad luck in regards to their overall health and wellbeing.
Oportfolio endeavours to provide clients with bespoke personal protection policies, as well as offering the following services; Business Assurance, Life Assurance, Life and Critical Illness Insurance and much more besides. Contact our team for more information.
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