18% of staff have income protection despite huge need

by | Sunday 25th Mar 2018 | Mortgage Insights

Couple happy that they have income protection

Research published in June 2017 shows the astonishing lack of critical illness or income protection insurance taken out by the UK workforce. The research conducted by Canada Life Group Insurance, which surveyed 1,010 full- and part-time employees in the UK, shows few across the country have a financial back-up plan in place should they fall seriously ill.

Only 18% of respondents said they had some form of critical illness or income protection insurance to help them out should they contract a critical illness that impacts their earnings potential. Most shocking is that 72% said that they would struggle to cope financially should their income drop by £570 a month.

That figure’s significant in that it’s the average loss of income experienced by approximately 80% of families following a cancer diagnosis. In cases where a major income earner in a household is hit by a serious illness, the right critical illness or income protection insurance policy can help act as a financial buffer and offer financial support during times of crisis.

The case for critical illness or income protection insurance

The research by Canada Life Group Insurance also highlights numerous other statistics that support the case for critical illness or income protection insurance. Some of which include:

80% of respondents who are single and have children as dependents would financially struggle should they lose £570 a month. Only 10% of that 80% have some kind of critical illness or income protection policy

70% of those in a committed relationship or are married and don’t have children would also find themselves struggling to cope financially. Only 18% of that 70% have some kind of critical illness or income protection policy

71% who are committed/married with children would struggle to cope financially with a loss of £570 per month. Again, only 22% of that 71% have covered themselves with a specific critical illness or income protection policy

18% of respondents say that they have no savings at all, while 10% admitted to having less than £1,000 in savings to cushion the blow should they be hit by a serious illness

45% say they would have to apply for state benefits to help them get by financially if they were diagnosed with a serious illness, while 22% worry about being a financial burden on their family

The importance of protecting yourself with personal insurance

One of the more striking figures to take from the survey is that 46% say they aren’t worried at all by not having a personal or income protection policy, which is an attitude that flies in the face of the statistics mentioned above.

With so many saying they’d struggle to pay for their lifestyle if they encounter a serious illness, and with 72% admitting they’d struggle to afford basic utility bills should their income fall by £570 a month, the benefits of a critical illness or income protection policy as a safety net are there for all to see.

Working alongside Oportfolio’s specialist consultants can help people to better understand what type of critical illness or income protection policy is most suitable for them at their current stage of life, as well as helping them to find a policy that’s appropriate for them and the dependants who are reliant on them.

Contact Oportfolio today to discover more about the range of personal protection policies available for your needs and budget.

Please note that neither Oportfolio Limited or First Complete Limited are responsible for the accuracy of the information contained within externally linked sites accessible from this page.

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