Only quarter of Brits have adequate insurance cover against loss of income

A recent study carried out has shown the low level of insurance protection cover amongst Brits against loss of income in comparison to the reliance of British households on more than one income. According to the study almost fifty percent of households in the UK rely on more than one income in order to cover living costs, spending, and expenses. However, only a quarter of Brits seems to have adequate insurance cover to protect against the loss of their income.

The data comes from the Scottish Widows Protection Report. The information from the report showed the low level of protection amongst Brits when it comes to insuring themselves against loss of income due to situations such as illness or death. The report also showed that the majority of Brits had less than two months salary in savings to cover them in the event that they ended up losing an essential income.

According to the report: “These findings show that if a breadwinner becomes long-term ill – or dies – the average household in the UK does not even have their essential expenditure covered – let alone enough money for those little luxuries.” The report also indicated that even those with over thirty thousand pounds in savings shouldn’t get too complacent about how they would manage in the event of a loss of income: “Many people aspire to do more than just ‘survive’ a crisis – they wish to maintain their current lifestyle.”

A spokesperson from Scottish Widows stated: “The majority of the population is walking a financial high wire without a safety net. Nobody knows what is around the corner, but we have to accept that all too often illness does strike and accidents do happen. If people don’t start to take responsibility for their own financial futures then they could be left in a position where they can’t even cover the essential expenditure in their lives.”

Tags: employed, company, expenditure, income, cover, payment