An income shock could push one in three UK families into hardship within three months, Vitality research has found.
It’s survey of 2,000 adults with children under the age of 18 found many lack a financial buffer or a protection policy if illness or injury meant they could not work for a prolonged period.
A third (32%) of respondents said they would not be able to fund their essential expenses beyond three months if they could not work.
Not being able to work for a year would leave half worried about paying their household bills (50%) or their rent or mortgage (49%).
Not being able to buy food or other necessities was a concern for 46% of parents.
A question of protection
The insurer said the findings had highlighted an opportunity for intermediaries.
Indeed, more than a third of those questioned (37%) considered buying income protection, but only 18% had done so.
A further 13% said they would like to take out protection but have not got round to doing so yet.
Cost was an issue for many, with 31% put off by the price.
When it came to savings, almost a third of families had less than £3,000 set aside.
Justin Garbutt, director of IFA distribution at Vitality, said there was a clear gap between how much parents’ valued protection and how often it was acted on.
“Many recognise its importance, but good intentions are not always translating into action,“ he said.
“For advisers, that’s a real opportunity.
“Engaging clients at the right moment and making protection simple, relevant and actionable means it’s there for families when they need it most,” he added.
