Over a quarter (26%) of workers who don’t hold an Income Protection policy would like to have one, according to the latest survey from LV=.
This new research from protection specialist has explored attitudes to income protection ahead of Income Protection Awareness Week (IPAW).
While interest grew amongst those without protection, findings also saw that 15% of working adults already had an Income Protection policy in place, and approximately 12% had IP provided by their employer.
Mike Farrell, protection sales director at LV=, said: “As the impact of the cost-of-living crisis deepens, people are becoming aware of their financial resilience and the value that income protection insurance brings.
“With energy bills and mortgage and rent payments rising, increasing numbers of people are worried about how they would pay their bills if an accident or illness prevented them working.”
Worryingly, nearly one in five of those surveyed claimed that they would struggle to pay their mortgage or rent if they couldn’t work for two months due to illness or injury.
Furter from this, 60% of 25–44-year-olds without protection claimed they would feel more financially resilient if they held an IP policy that paid if they were unable to work due to illness or injury
In total, LV= paid £13.6m in new and on-going income protection claims in 2021, with the most commonly claimed conditions being Musculoskeletal issues (20%), fractures (20%) and cancer (17%).
These represented nearly 58% of all income protection claims.
Farrell added: “Income protection remains a flexible way to maintain a financial safety net if someone is unable to rely on cash savings.
“Budget income protection plans with 12- and 24-month options provide an income for specified periods while giving more flexibility to customers.
“For those facing financial hardship and unable to cover premiums, in certain circumstances, LV= payment breaks can offer relief without sacrificing their cover.”
