"With rising energy bills, rent and mortgage costs, having an IP policy can offer customers essential financial security if they are unable to work."
- Mike Farrell, protection sales director at LV=
Of those surveyed (2,720), financial vulnerability was most prevalent amongst couples; 45% of working couples rely on both incomes to meet monthly living expenses, rising to 70% amongst 18-24-year-olds.
A third of working adults have less than £5k in savings, and yet household debt rose by £1,734 between 2023-24, reaching £20,640. Almost a quarter have under a £1k in savings and one in ten have no savings at all.
On average, working adults support three dependents with their income, and three in ten (29%) also care for a pet. Amongst parents of older children, nearly half support the same number of dependents.
Despite half of the UK’s working population saying they would feel more financially resilient if they had insurance in place, only 27% have an Income Protection (IP) policy.
“With rising energy bills, rent and mortgage costs, having an IP policy can offer customers essential financial security if they are unable to work […] helping them face life’s challenges with greater confidence and peace of mind,” explained Mike Farrell, protection sales director at LV=.
Responding to these figures, Jo Miller, managing director at the Income Protection Task Force (IPTF), said, “Despite growth in IP sales over the last few years, there is still some way to go until anywhere near enough people have the cover that they need to be financially resilient.”
