According to Scottish Provident's new Financial Safety Net Report 58% do not have any type of protection in place and 31% would be forced to drastically cut back on living costs should they or the main breadwinner be unable to work for a prolonged period of time.
The Financial Safety Net campaign is to encourage people to take action and create their own financial safety net'. The campaign will also raise consumer awareness and understanding of the long-term benefits of protection products.
One in three has life cover, but the levels of other insurances are drastically lower. Only 13% have critical illness cover, 9% have income protection and a mere 5% have unemployment benefit.
Many claim the number one reason for not having any cover is due to it being too expensive; revealing that there is still wide-spread misunderstanding of the various products available and their relative cost.17% claim they do not know why they have no protection in place for themselves and their family.
Susan Barclay of Scottish Provident comments, "With the majority without any form of protection in place, many are taking a substantial risk with their own and their family livelihoods. Financial Safety Net is aimed at encouraging people to assess their personal situation and put emergency savings in place, so they have a financial safety net and have peace of mind should the worst happen."
Life insurance: News update: 26 November 2010