Too many UK workers are living without protection, leaving them vulnerable to life’s unexpected moments.

According to a report by LV, 43% of UK workers do not have any form of protection in place, which includes cover paid for by themselves or their employer. However, over half of workers said they would feel more financially resilient if they had insurance which protected their income or pays out in the event of a critical illness. This highlights that many people would benefit from the peace of mind that protection offers but have not yet taken action. Plus, the research found that 49% of UK households could only survive for up to three months without an income. A UK worker has, on average, three people who depend on their income, so this puts many households in a precarious financial position.

The self-employed population

People who are self-employed tend to be more vulnerable to unexpected injury or illness, as they do not have access to statutory sick pay. It is therefore concerning that only 1 in 10 of the self-employed population have income protection cover, but nearly a quarter of these respondents would like to take it out. Once again, this highlights that inaction is a key reason why people are living without vital cover. As such, 18% of self-employed respondents said they would need to carry on working if they were ill or injured to make ends meet. However, working through an illness could be even more detrimental to your health, so having the right cover is essential.

The importance of reviewing cover

You still need to be proactive once you have taken out cover. The survey found that nearly a fifth of workers have had a change in their circumstances but have not notified their insurer. 16% of people said their income had changed or they had moved jobs, while 8% said they had welcomed a child. In any of these circumstances, the policyholder would need a different level of cover, so they could be over- or under-insured.

The cost of naivety

No one is invincible; however the research suggests that many people are unprotected as they don’t think they will need to make a claim. In fact, nearly half of the working population don’t think a protection event will happen to them in the next decade. The reality is that no one knows what’s going to happen. Taking out appropriate protection policies can therefore give you peace of mind that you and your family will have a financial safety net during times of uncertainty.

A professional adviser can help you understand the level of cover you need. Contact us to talk through your options.

As with all insurance policies, conditions and exclusions will apply

Source: https://www.lv.com/about-us/press/half-of-uk-workers-would-feel-more-financially-resilient-with-protection-in-place