Research has highlighted existing gap between awareness and prioritisation

Having a clear understanding of your protection requirements and the importance of getting the right professional financial advice as you enter the New Year are essential, and they will be of increasing significance from April when working age welfare support for mortgage interest and bereavement benefits are scheduled for reform. We at Hutt Professional have financial advisers with many years of experience who would be more than happy to offer you you professional advice you would need.

According to the new research more than one in five (23%) Britons with savings say they wouldn’t last longer than a couple of months if they were unable to work, yet less than one in twenty protects their income.

Disparity raises concerns over UK households
The study from Scottish Widows revealed that six in ten UK working adults with savings said they would last no longer than six months if they became unable to work, while fewer than one in ten (8%) said they would manage less than a month. Despite a 7% increase over the past 12 months in the average amount people are saving, fewer than one in twenty (4%) have income protection cover.
The research highlighted the existing gap between awareness and prioritisation for this type of insurance. This disparity raises concerns over UK households’ financial resilience, as one in seven have been affected by critical illness, and more than a third (37%) rely on two incomes. Out of those affected by critical illness, 42% said they had to make lifestyle changes in order to cope with the financial impact, while only one in twenty had a policy in place.

Spending cuts and welfare benefits
People expect their financial priorities to change the most when buying a property (19%), as a result of government spending cuts and welfare benefits (18%), and having children (15%), varying by generation (28% of over-55s said cuts, government spending and welfare would cause their financial priorities to change).
However, despite this expectation, more than a third (35%) are carrying non-mortgage debt over each month, and this rises to 52% of 25 to 34-year-olds and 48% of 35 to 44-year-olds, leaving a vast proportion at increasing risk if the unexpected were to happen to themselves or a loved one without this type of safety net in place.

 

Source:http://www.goldminemedia.co.uk/   05/01/2016