State of the Protection Nation
At Cotswold Independent Financial Services, we were alarmed to read the results of Royal London’s second State of the Protection Nation report. The report revealed “that the top reason people gave for not taking out protection was that they think premiums are too expensive (69%). They also believe they won’t get ill and they don’t need insurance. Despite this many people want to protect their lifestyle and loved ones from the financial impact of dying or becoming seriously ill.”
We see people protect their families from their death but sometimes not appreciating the financial burden that ongoing ill heath can play on the families’ finances and ability to bring in income.
The Royal London survey showed that “46%) felt they were unlikely to go on sick leave for three months or more, 44% thought they were unlikely to have an accident that meant they were unable to work and a third (34%) felt it was unlikely they would contract a serious health condition or illness.”. This perception contradicts research from Pacific Life which shows “the chance of being off work for two months or more before age 65 is 26% for males and 37% for females.”
The report continues that “if illness struck nearly half (43%) felt they could manage for a year if they were unable to work due to serious illness or injury, 55% said they would manage for six months and 71% would manage for three months. Yet the reality is only 2 in 5 could survive financially for more than six months if they were unable to work”. Read the full report.
If this does resonate with you and you’d like to do something about, please talk to us as we can work out what level of protection would be cost effective for you and your family.