Neil Galjaard, insurance director at Paymentshield, said:
“Our survey has presented some surprising statistics but this one, showing a major lack of caution, has got to be one of the more worrying ones. Individuals appear to be unprepared for their future and have no sensible plan in place to react to events that are out of their control.
"The results also revealed that a quarter of the respondents said they would not last longer than a month on their current savings. Again, showing complete lack of forward planning.”
The survey, carried out in January of this year, also found that 63%* of respondents thought they could either not afford income insurance, could not see the value in it or have never even considered it.
Galjaard, continues:
“There is clearly a lack of education related to income insurance and confusion with other products in the market. This is completely different to single premium PPI, which has become a regularly complained about product in the insurance industry.
"PPI is sold to help cover payments on specific loans and credit cards in the event of unemployment or sickness, whereas income insurance allows people to protect their actual income and offering wider protection should regular income stop suddenly.
"This helps cover any outgoings and is a standalone product that does not need to be purchased alongside a credit agreement.”
