A new report from Hargreaves Lansdown reveals that the “squeezed middle” population, in their 30s and 40s, is falling into the protection gap, with insufficient life cover to protect their families.
According to the HL Savings & Resilience Barometer, only 26% of couples with children have enough life cover, and just 30% of those aged 30-34 and 34% of those aged 35-39 have adequate life cover.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The squeezed middle, in their 30s and 40s, carry an enormous weight of responsibility.
“They’re more likely to have a young family relying on them to keep the wolf from the door.
“They’re also more likely to own a home with a sizeable mortgage, which needs to be paid if something was to happen to them. It means they need the biggest and most robust safety nets, so it’s particularly alarming that so many of them fall into the protection gap.”
The study shows that people with mortgages are more likely to lack sufficient life cover, with only 35% having enough. Middle earners are also falling short, with only 39% having adequate cover.
The report emphasizes the need for individuals to consider their financial resilience, prioritize their expenses, and ensure they have enough savings and insurance to cover their families in case of unforeseen events.
