People living in Britain are more likely to take out insurance cover on their electrical goods and home contents than they are to protect themselves, according to an independent research study on behalf of Scottish Provident.
While 44% have life cover, only 15% have critical illness cover to provide a lump sum or income should they or their partner get a critical illness.
The study by market research specialists Ipsos MORI to investigate the changing lifestyles and attitudes of the UK population, reveals that just 9% of people have income protection insurance and only 5% have unemployment benefit. It also shows that 11% have personally funded private medical insurance.
The most common barrier to taking out insurance to provide a lump sum of money or income should you become critically ill or die, is cost - with 44% thinking that insurance is too expensive. This is followed by one in eight who think it is not necessary as they have savings - but in reality how long would these savings last?
Susan Barclay at Scottish Provident says, "Life protection can be bought from as little as £10 per month, and extras such as critical illness cover can be added for around £17 extra a month. While many people think that their savings will cover them, should they fall critically ill and are unable to work, the financial impact can run into thousands of pounds."
Income protection insurance: News update: 4 January 2010