"Parents are understandably concerned about the wellbeing of their children as mental health pressures continue to rise. As emotional wellbeing is often linked to financial resilience, we encourage people affected to openly discuss their mental health struggles."
- Mike Farrell, LV= protection sales and marketing director
LV= highlighted that most policyholders are unprepared if sickness or injury resulted in taking time out of employment, despite 77% expressing concern that health problems would affect their family’s happiness, especially mental health.
The insurer found that, in the past two years, 13% of those surveyed have had two months or more off work due to illness, injury, or mental health. Of that 13%, almost half (6%) had to take time off work for mental health issues. For workers aged 18-24, this percentage rose to 9%.
Furthermore, LV= notes that just one in ten people who couldn’t work for two months or more due to illness or injury relied on the pay-out from their protection policy, compared to 46% who relied on employer sick pay.
Considering this statistic, Mike Farrell, LV= protection sales and marketing director believes that "it is important as protection providers to consider how to go beyond simply paying a claim." He notes that support should begin on "day one" to provide "emotional and practical support when they need it the most."
"Parents are understandably concerned about the wellbeing of their children as mental health pressures continue to rise. As emotional wellbeing is often linked to financial resilience, we encourage people affected to openly discuss their mental health struggles so that they can access the right support."
Prior to this report, research conducted by Royal London found that 9 in 10 (88%) of consumers have dealt with issues such as poor mental health, affecting either themselves or a loved one (57%), physical illness or injury (49%), or the death of a loved one (32%).
Royal London highlighted that over 75% of these customers felt ill-equipped to deal with these challenges alone and were in "dire need of additional practical and emotional support." Furthermore, of those that received help, only 9% of them got it from a professional.
Commenting on these findings, Jennifer Gilchrist, Royal London protection specialist, has said:
"The pandemic has had a profound impact on people’s health, wellbeing, and finances. The scale of the problem is striking, with one in nine having faced significant life events. And the vast majority of them have had to deal with the issues alone. It’s also concerning that many, who have added value support that comes with their financial protection policy, were unaware of the support options that are available to them.
"More than ever this year affordability will be an issue. Pressure on people’s finances will have many questioning the value of protection policies as they look to cut costs. Providers and advisers need to be more vocal in promoting protection policies and the additional benefits, which many are clearly in need of, but oblivious to.
"The message for 2023 needs to be, protection policies offer help when it’s needed most, but that help comes in the form of more than just financial support."
