Over 14 million workers could be exposed to financial ruin in the event of an accident, illness or unemployment, is the rather alarmist prediction according to research from bank Alliance & Leicester. They say that over half of British workers would not be able to manage financially if they were unable to work in the event of an accident, illness or unemployment
Of those who would be unable to manage, nearly half say they would need up to £1,000 each month to supplement their current savings and a further quarter would require up to as much as £1,500 each month, just to stay afloat whilst off work. Of those who said that they would be able to manage, many would either have to spend their hard-earned savings, or rely on their partners’ income in order to get by
One in five have no insurance and hardly any savings at all to fall back on.
Lindsey Henson, Manager for Protection at Alliance & Leicester says: “It’s easy when you’re busy with your working life to take the security of a monthly income for granted. However, if you become ill, suffer an accident or are made redundant then you may be unable to earn an income. It is vitally important to consider what measures you can put in place to ensure you can continue to meet your financial commitments and maintain a reasonable standard of living. Savings may help you get by for a while, but if you are unable to work for a long period of time, your hard-earned savings can simply disappear.”
Income Protection insurance : News update: December 2006