New research from Scottish Widows shows that three out of
four people are putting their families' financial security at risk, by failing
to protect their future through life insurance, critical illness or income
protection.
The Scottish Widows Protection Report, based on research
amongst 5000 adults, shows a marked decline in the number of people taking out
life insurance, income protection and critical illness cover; leaving
themselves and their families vulnerable should the unexpected happen and their
circumstances change.
Half now rely on just one income. One in three households
would use up their savings within a month if they lost their income, one in
five would struggle to pay their mortgage and one in three would find it
difficult to cover their household bills within a year of losing their income.
In the event of losing a partner, 29 % would need to rely on
their savings to cope financially. 14 % do not know how they would cope should
something happen to their partner.
Richard Jones of Scottish Widows says, " People are not
protecting themselves in the event of unforeseen events. Many do not have the provisions in place to
support their families for any substantial period and even after just a month
could be left with no buffer. It is at times like this that families need to do
all they can to protect themselves in the event the unexpected happens. "
The biggest barrier, especially on critical illness cover,
is cost. Of those without a policy, 22 % say that they cannot afford cover, and
15 % consider it to be a waste of money.
That people are not buying life, income protection and
critical illness products due to cost is not news. The insurance industry
repeatedly urges people to take more cover, but unless it offers affordable and
simple products, nothing will change.
Life insurance news: 29 March 2012
