More than a third of FTBs do not recall receiving protection advice, data finds
The figure stood at 37%, despite 52% of FTBs needing both household incomes to cover their monthly outgoings, data from LV= found.
More than a third of first-time buyers (FTBs) did not recall receiving protection advice during mortgage discussions with a financial adviser or broker, research from LV= found.
The figure stood at 37%, despite 52% of FTBs needing both household incomes to cover their monthly outgoings.
More than a quarter were not confident they could cope financially if illness or injury caused a loss of income.
43% had no form of protection in place.
The research also found 49% of UK households could cope for no longer than three months without an income.
Among self-employed workers without income protection, almost a quarter wanted to take out cover, but only one in 10 currently held a policy.
Almost one in five self-employed workers said they would need to continue working through an illness or injury to make ends meet.
Two-thirds of blended families with younger children could live for no longer than three months without an income.
30% would need to rely on money from another person if illness or injury stopped them from working.
Mike Farrell, protection sales and marketing director at LV=, said: “We’re proud to support the IPTF this week to highlight the importance of Income Protection.
“Our latest research shows that 49% of UK households would only be able to cope financially for up to three months without an income.
“With the average LV= Income Protection claim lasting almost six years, this highlights how vulnerable most would be to an income shock, and the role Income Protection plays in building financial resilience.”
Farrell added: “While the findings are particularly striking among first-time buyers, self-employed workers and blended families, these challenges are not unique to those groups.
“Income Protection Action Week is an important opportunity for the industry to help more people understand their risks, protect their income and build greater financial resilience for the future.”
Jo Miller, managing director at the Income Protection Task Force, said: “Too many people remain one illness or injury away from financial difficulty.
“LV’s findings demonstrate why Income Protection remains such an important part of financial planning and supports the work that we are doing at IPTF through IPAW and other initiatives.
“While awareness is improving, there is still a significant gap between recognising the value of protection and taking action.”
Miller added: “Income Protection Action Week provides an important opportunity for advisers to close that gap by helping more clients understand how they would cope if their income stopped.”
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