"There continues to be misconceptions around what IP is, what it covers, and misplaced concerns that they may not be eligible."
- Dan Simpson - Shepherds Friendly
Shepherds Friendly’s Reaching the Unprotected report 2026 has found that four in five full-time workers without income protection (IP) insurance are renting or have a mortgage.
The survey of over 2,000 UK adults found that 32% of full-time workers without IP are renters, while 49% have a mortgage or loan secured against their home.
The findings come despite concerns around income security being high among participants. 38% said it was likely their income could be impacted by factors outside of their control within the next five years, compared to 21% saying it was unlikely.
Illness or long-term health conditions was the third biggest perceived threat at 51%, above job loss or redundancy at 50% and AI automation replacing job roles at 48%. The main concern cited was inflation and rising living costs at 68%, followed by an economic downturn at 60%.
Concerns about illness and injury increased to 58% for 18 to 24-year-olds.
Shepherds Friendly says this highlights the potential value of IP to younger workers, particularly for those who rent. According to the ONS, 25 to 34-year-olds account for the largest single share of private renters in the UK.
20% of full-time workers aged between 18 and 64 have already experienced a period where they were out of work and didn’t receive their usual earnings, rising to 40% for those aged between 18 and 24.
The report found that just 16% of UK adults working full time have an income protection policy, with take-up lagging other insurance products such as life and health insurance.
"Rent and mortgage payments don't stop when someone's income does," Dan Simpson, chief commercial officer at Shepherds Friendly, said.
"Yet our research shows that many workers with these significant financial commitments have no income protection policy in place should illness or injury prevent them from working.
"There continues to be misconceptions around what IP is, what it covers, and misplaced concerns that they may not be eligible.
"Workers are increasingly aware that their financial circumstances can change beyond their control in future, yet relatively few have taken steps to protect their ability to earn an income if that happens.
"It continues to be our and the industry’s job to ensure people are aware of the options open to them as part of their financial resilience planning."
