More than a quarter of UK workers who are not covered by income protection (IP) would like to be, according to research from insurer LV=.
The mutual’s research of 4,000 adults across the UK found 15% of those in work had an income protection policy in place and 12% had their IP provided by their employer.
However, 26% of respondents who did not hold an IP product would like to have one.
Notably, 60% of 25–44-year-olds without protection would feel more financially resilient if they had a policy that paid if they were unable to work due to illness or injury.
The survey also showed 26% of working adults have less than £1,000 in savings or no savings at all, nearly one in five (19%) would have to rely on their partner’s income to cover bills if they were unable to work and only half (49%) would be able to survive more than four months without an income.
According to the research, mortgage holders were more likely than renters to hold an income protection policy. One in four (25%) mortgage holders had IP compared to just one in ten (11%) renters surveyed.
And while 19% of UK workers would struggle to pay their mortgage or rent if they could not work for two months due to illness or injury, 24% of mortgage holders surveyed believed they did not need IP.
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.
“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.”
