Have you protected your income?

A report has revealed that only a quarter of working adults in the UK have an income protection (IP) policy.

According to research from LV, only 27% of the working population have a financial safety net to protect their income if they are unable to work due to illness or injury. Despite this, half of those surveyed said they would feel more financially resilient if they had appropriate IP cover.

The most financially vulnerable group

Interestingly, the survey found that couples are the most likely to be financially vulnerable, with 45% relying on both partners’ incomes to cover monthly expenses. This is more prevalent among the younger generations, as 70% of working couples aged 18-24 depend on both salaries to keep up with monthly bills.

Limited savings increase vulnerability

The average working adult has three people who rely on them financially. But many survey respondents had a limited savings pot.  A third have under £5k in savings, nearly a quarter have less than £1k and one in ten have no savings at all. This is particularly worrying considering that household debt reached an average of £20,640 in 2023-24.

Don’t leave it to chance – we can help you source the right cover for your circumstances.

As with all insurance policies, conditions and exclusions will apply

Sources:

https://protectionreporter.co.uk/lv-finds-only-27-of-working-adults-in-the-uk-have-ip-policies.html