"As the impact of the cost of living crisis deepens, people are becoming aware of their financial resilience and the value that income protection insurance brings. "
- Mike Farrell, LV= protection sales director
LV= research conducted to coincide with Income Protection Awareness Week (IPAW) has revealed that only 15% of working adults have an income protection policy in place while 12% have IP provided by their employer. This equates to less than 30% of working adults facilitating income protection despite the current cost of living crisis.
The protection specialist concluded that with the number of individuals not having adequate savings if they become unable to work, those without IP are becoming increasingly vulnerable to financial shocks.
LV= found that 26% of working adults have less than £1k in savings or no savings at all. Consequently, if unable to work, less than half would be able to survive more than four months without an income while 19% would have to rely on their partner’s income to cover bills.
60% of 25-44 year olds without protection said they would feel more financially resilient if they had a policy that paid if they were unable to work due to illness or injury.
Commenting on these statistics, Mike Farrell, LV= protection sales director, has said:
“With energy bills and mortgage and rent payments rising, increasing numbers of people are worried about how they will pay their bills if an accident or illness prevented them from working.
“Income protection remains a flexible way to maintain a financial safety net if someone is unable to rely on cash savings. Budget income protection plans with 12 and 24 month options provide an income for specified periods while giving more flexibility to customers.
“For those facing financial hardship and unable to cover premiums, in certain circumstances, LV= payment breaks can offer relief without sacrificing their cover.”