Over half of Britons don’t have any financial protection in place and many would have major issues should income stop through not being able to work for a prolonged period of time.
According to Scottish Provident’s new Financial Safety Net Report nearly 60% of Britons don’t have any type of financial protection in place and almost a third would be forced to severely save on living costs should they or the main breadwinner be unable to work for a prolonged period of time.
To encourage consumers to take action, Scottish Provident has launched its Financial Safety Net campaign. This helps to raise awareness and understanding of the long term benefits of protection products and help consumers to seek independent financial advice and create their own ‘financial safety net’.
Whilst around one third of the nation has life cover, the levels of other protection products are drastically lower. Only 13% have critical illness cover, 9% have income protection and a just 5% have unemployment benefit.
Many consumers say the main reason for not having any cover is due to it being too expensive. Whilst this might seem the case in the sort term when income is coming in, in reality the cost of not having any protection should something stop the income, the impact and cost could be far greater.
Susan Barclay, head of marketing, Scottish Provident commented: “With the majority of Britons without any form of protection in place, many are taking a substantial risk with their own and their family’s livelihoods. Therefore, we are launching the Financial Safety Net campaign in order to encourage more people – especially those with dependents – to take action and put their own ‘financial safety net’ in place.
“The campaign is aimed at encouraging consumers to assess their personal situation and put emergency savings in place, but also for them to go and visit an IFA to ensure they will be able to maintain their standard of living should the main breadwinner be unable to work. “