A couple in their mid-20s now have a 63% risk of being unable to work for two months or more before they retire, research suggests.
The figures – from the LV= Risk Reality Calculator – highlights the risks of people being unable to work for more than two months, suffering a serious illness or dying. The combined risk of a 26-year-old couple experiencing any of these events rises to 70%.
The analysis is included in the new LV= Fuel for Life online report for financial advisers specialising in protection.
A spokesperson for the life office said that the report offers tools and support for financial advisers and highlights how protection policies help households experiencing periods of financial hardship.
Designed to be used by financial advisers, it produces a personalised risk report for potential income shocks, helping advisers address unexpected scenarios such as being unable to work for long periods of time due to illness.
The report also states that LV= collectively paid £3.2m in Income Protection and Personal Sick Pay claims between March and October last year, supporting over 1,000 customers. Cancer and musculoskeletal conditions were the most commonly claimed for conditions.
Over 193 LV= members who suffered financial distress due to Covid have benefited from payment breaks, resulting in £29,500 of waived premiums.
The LV= spokesperson said that the life office continues to offer payment breaks to those struggling to pay premiums until 30th April 2021, with cover remaining in place.
Debbie Kennedy (pictured), protection director at LV=, said that protecting income is “the bedrock of financial resilience” and many are still vulnerable to unforeseen shocks that can affect their daily lives.
She said: “In light of the nation entering the third national lockdown, LV= is determined to continue supporting members who are facing tough economic conditions.”
Kennedy said the life office “will continue its support for financial advisers and build on the work we did last year”.
She said: “In 2020 we introduced our ‘refreshinar’ programme, a series of webinars to support advisers, which was attended by more than 10,000 advisers. Nearly 4,000 have already signed up to our early 2021 sessions.”