"We want people to live their lives for the now and say yes to the everyday without financial stress."
- Richard Horner, Head of Individual Protection at MetLife UK
Of those surveyed (3,021) 24% of working adults in the UK had to take between 1-3 weeks off last year – 22% said they weren’t paid by their employer during these periods of unplanned leave. Only one in five (20%) were paid for a portion of that time but later received reduced pay, whilst 15% were only paid for a short period.
Unsurprisingly, 13% of employees would rely heavily on their savings if they couldn't work due to injury, with 11% cutting back on shopping to keep up with bills & ongoing costs. Last year, The Exeter’s ‘Health & Financial Fears’ Report found adults in the UK are already struggling with these costs, with 41% spending less on entertainment, followed by the weekly shop (41%), saving less (37%), and limiting electricity, gas or water usage (37%).
READ MORE: The Exeter’s ‘Health & Financial Fears’ Report 2023
Discussing additional financial support under these circumstances, 9% said they would need to rely on their credit card or overdraft to afford living costs – the same figure said they’d need to borrow money from their parents.
Worryingly, 8% said they would have to rely on their partner working overtime whilst a further 8% would have no option but to miss utility payments during an extended period of unplanned leave. In 2023, LV’s ‘Reaching Resilience’ Report revealed over 50% of working couples rely on dual income for monthly living costs. Furthermore, 28% of stay-at-home parents said their partner would have to take time off work if they were unable to look after their children due to ill-health or injury.
READ MORE: LV= reveals over 50% of working couples rely on dual income for monthly living costs
Despite this, only 7% said they’ve purchased Accident & Sickness cover which supports those recovering from injuries or accidents, and even less (6%) have Income Protection (IP) which replaces part of an individual’s income if they’re unable to work due to ill-health or injury.
Additional research from MetLife UK found that 35% of advisers who recommend protection products said customers are only interested in financial protection once accidents have occurred. Kyle Gooden, Managing Director at Clarity Health Insurance, recently confirmed that the Private Medical Insurance (PMI) market is also experiencing this trend: “Customers with pre-existing conditions [are] enquiring ‘after the fact’ and being told that these health conditions cannot be covered.”
READ MORE: Self-funded private hospital admissions spike in 2023
“Accidents happen and they’re common, but our research shows us that we’re not always prepared for when it happens. Although it’s hugely positive that 62% of people have a form of financial protection, people aren’t protecting their lives for the now, for today’s moments,” stressed Richard Horner, Head of Individual Protection at MetLife UK.
