The nation is dramatically under-prepared for the loss of a breadwinner’s income through either death or illness, according to the Scottish Widows Protection Report.
The report, which will be repeated annually to track the nation’s protection shortfall, found only one in four believe they are adequately protected should they lose the main income from their household. Over half of Britons have less than two month’s salary tucked away in savings.
The insurer said that despite the trend of women wanting to move back to being ‘stay at home’ mums, this is not possible for over 10 million UK households, which are dependent on two or more salaries to maintain an acceptable standard of living.
Nick Kirwan, protection market director at Scottish Widows, says: “Although the number of adults living on their own has doubled in the last three decades and the number of people having children is falling, almost half of households in the UK still have dependent children. At the same time, changing job patterns have seen millions of women enter the workplace and two-income households become the norm. This reliance on two incomes to buy and run the family home means millions of households are effectively doubling the risk of financial hardship should something go wrong.”
Income Protection and Life Insurance : News update: November 2006