Protection cover ranks lowest among the things Brits would sacrifice to pay for essentials as the cost of living crisis intensifies, according to research from MetLife UK.
The provider commissioned Censuswide to survey 3,000 UK consumers and found 57% of Brits say that while they have not had to make difficult choices and cut back their outgoings yet, they suspected they would need to do so in the future.
When asked what they would sacrifice to pay for necessities just 5% said life cover, the same percentage said private medical insurance and 4% income protection – indicating that they value the peace of mind these products bring.
This compares with four in 10 who said they were willing to give up everyday perks such as eating out, 37% who would cut down on holidays or day trips, 32% would reduce socialising and 28% would trim entertainment subscriptions such as Netflix.
Around a quarter would sacrifice hair cuts and beauty treatments, 17% their gym membership and 12% food subscription services.
But football and other sports teams could also be left feeling the pinch as 9% were willing to give up their season ticket to their sports team, 8% would sacrifice their car, 7% their phone contract, 6% their season travel ticket and 4% private school fees.
Rich Horner, head of individual protection at MetLife UK, (pictured) acknowledged it was a particularly difficult time for people, with many seeing their personal finances severely under pressure.
However, he noted it was positive to see that consumers remained committed to holding life insurance and income protection policies as these can reap much greater rewards with minimal upfront costs.
“While not a tangible product, income protection gives you the peace of mind that should the worst happen your income is protected. Income protection is also crucial for workers, particularly those who are self-employed, who may need to take time off work due to an accident or illness,” Horner said.
“While paying monthly for these products may feel like a stretch at the time, policyholders can be comfortable in the knowledge that they have a back-up plan in place for when they need it most.”
Horner continued: “The highest inflation in 30 years, rising energy prices, fuel bills and food costs are all stopping our money from going further each month.
“Finding the funds to pay for daily essentials has already pushed Brits to weigh up their outgoings and think about where they can cut back. While some have already cutback wherever they can, even more of us are braced to do so in the months ahead.
“Daily perks such as coffees, self-care such as hair appointments and socialising were found to be some of the first things to go when trying to save money. While they shouldn’t be prioritised at a difficult time financially, small treats can have a positive impact on our wellbeing and give us all something to look forward to amid what can feel like a very gloomy time.”