15 million Brits are taking a risk with no protection cover
Published ¤ 03/04/2012 16:46:29
UK adults are putting their financial security at risk according to new research from unbiased.co.uk, which reveals three in ten (30%) of consumers are uninsured in vital areas such as life insurance, income protection, critical illness and mortgage payment protection.
Furthermore, a growing number of consumers are now cutting back on their insurance policies, with almost one in 10 (8%) cutting back on important areas in the past 12 months.
"Consumers looking to tighten their purse strings are now adding insurance policies to the 'cancellation list', choosing to let go of their financial security in favour of some extra cash in their pockets. The 'it won't happen to me' attitude seems to be at the forefront of people's minds as they fail to realise what this may cost them in the future." said Karen Barrett, CEO of unbiased.co.uk.
She added: "We need to raise awareness amongst consumers that the state is no longer prepared to intervene in the event of ill-health or redundancy; it is up to each of us to take on this financial responsibility."
The recent survey found that over 15 million UK adults would be financially at risk if they were to lose their main source of income, yet despite this, 15% of people don't see income protection as necessary and 15% claim that they can't afford it.
In addition, when consumers were asked which insurance products they rated as most important in providing them and their family with long-term financial security, income protection was ranked seventh, below mortgage payment protection, motor insurance and building and contents insurance.
"Although it is important to protect financially against loss of or damage to valuable items and possessions, consumers should not lose sight of the importance of protecting their main source of income. Income protection is designed to protect you should you be unable to work and ensures that we would still be able to pay for the car, the mortgage and the everyday essentials if we lost our full salary.
"There is an array of protection products on the market at the moment and as recent news has illustrated some policies fail to pay out in certain circumstances. If you are unsure of the terms and conditions of your policy and whether you will be fully protected then seek help from an independent adviser. They will take into account your terms of employment and will check what occupation the policy covers to ensure you are fully protected.
"If you are worried that the cost of insurance is too much of a burden on your finances then speak to your adviser to decide where you are most at risk. Your adviser will be able to recommend protection products to match your individual needs as well as seek out policies which are more likely to suit your pocket.
Paul Skinner, managing director of PKS said "These figures are astounding, particularly considering how the cost of protection has dropped over the last 10 years. People are more concerned about protecting their belongings on holiday than protecting their livelihoods.
"What's more, come December, when the European Gender Directive takes effect, the cost of protection for women is likely to rise by around 20%. By taking out cover now, the premiums can be guaranteed, and protected against any such rises."
At PKS we offer independent advice on all areas of personal and business protection. If you would like to review your current situation, please contact PKS on the number at the top of the page, or click here to send a message.
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