We’re sure that many of you - certainly those of you who read the QuoteLifeCover blog regularly - are becoming a little weary of our mentions of the cost-of-living crisis, and indeed, much of what has been said about the crisis in the wider media. But of course, the reality is that it is a crisis, with great numbers of people across the country seriously struggling.
It therefore particularly interested us lately to read a set of statistics quoted by COVER magazine, which shed some interesting light on ordinary people’s financial situations right now, and how they are currently managing - or not managing - to deal with the crisis.
Persistent worries about the future, as customers struggle to cut back
COVER referenced research carried out by a financial services company, which found that 64% of UK adults - nearly two-thirds - or around 33 million people, are concerned about the future due to the present state of their finances. Even worse, more than half of UK adults - 56% - felt they had already done everything they were able to do in order to save money.
COVER brings us neatly onto the subject of protection insurance, and in particular, income protection insurance. Unfortunately, the relatively “intangible” nature of this type of insurance - it not having an obvious material benefit until and unless the policyholder actually needs to make a claim - can make it one of the first things that people decide to cancel, during difficult economic times like the present.
That’s a deeply unfortunate situation, when it is difficult economic times like the present that simply further underline why forms of COVER like income protection are so important.
Your single most important asset is your own earning power
Looking to the findings of other research cited by COVER, 31% of respondents remarkably said, “I have no need to protect my income.” Coinciding with this, only about one in 10 (11%) of those surveyed saw themselves as their own biggest asset. Instead, most respondents regarded property as their highest-value financial asset, followed by savings and vehicles.
The reality is, your own earning power is absolutely imperative, not least because it likely underpins so much else in your life. You might have an active mortgage, for example, and at this time of all times, it’s probably unlikely that you would be able to afford losing your source of income through a difficult-to-foresee cause such as long-term sickness or disability.
Income protection insurance, then, is arguably one of the very last things you should be going without - if at all possible - in the thick of a cost-of-living crisis. It is a type of insurance that pays out a sum of money each month in the event of sickness or injury rendering you unable to work, thereby providing you and your finances with what might be a vital layer of protection.
Would you like to discuss with an informed adviser what could be possible when you buy such a policy? If so, it’s a straightforward process to call us - on 0800 316 6917 - to benefit from our free no-obligation advice and quotation service.