Almost half of Britons are jeopardising their financial futures by neglecting to take out insurance to cover loss of income through illness or death, new data shows.
Twenty four million people are thought to have no cover in place for such an event, according to research conducted on behalf of Friends Provident by 72 Point.
Those without cover who said they had considered taking out an insurance policy to provide if the main earner of a household was unable to work or died, would be underinsured by an average of £14,500 a year.
A third of people estimated that they could live on less than 35% of their take home pay if they suffered a serious injury or illness. That equates to just £171 per week for an average earner – £300 less than the current average household expenditure of £471.
“It is time people took control of their future and looked at this in a responsible way, instead of burying their heads in the sand, especially in today’s environment. The shortfall in protection of £14,500 per year shows there is a huge opportunity for both advisers and insurers to educate people,” commented Ed Stuart-Brown, head of protection sales for Friends Provident.
“Ignorance is not bliss, it’s irresponsible.” Of those who have policies in place, over half (53%) said they were unaware of how much would be paid out if they made a successful claim. Mr. Stuart-Brown said people should ensure they have made adequate provisions in case the unexpected should happen.
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Justin Moy