Renters boost resilience with income protection

30 April 2023

Almost three quarters of private renters do not hold any protection products, industry figures1 reveal, despite tenants generally having lower financial resilience than homeowners.

Financial vulnerabilities

Indeed, separate research1 revealed that 14% of renters have no savings at all, compared with 8% of mortgage holders. Lacking the crucial safety net that protection provides is part of the reason more than twice as many renters (29%) as mortgage holders (14%) would expect to apply for state benefits  if they were unable to work.

Following a 63% rise during the decade to 2017 7 , the number of households who currently rent privately in the UK is estimated at around 4.5 million – leaving a significant number at risk should they suffer a loss of income.

The role of income protection

Income protection is a financial safety net that provides you with a tax-free income if you are unable to work. If accident or injury are keeping you away from your salary, your insurance cover steps in at the end of your chosen deferred period to help make sure you and your loved ones don’t suffer undue financial hardship.

In the current turbulent economic environment, the value of income protection for private renters is clearer than ever. As rising prices diminish savings pots,  tenants become ever more vulnerable to financial shocks  and missing rent payments.

Advice for you

Having the right protection in place for your unique needs can  help provide valuable peace of  mind. Get in touch today to find out how we can help.

  1. Financial Conduct Authority, 2022,
  2. FT Adviser, 2022,
  3. Office for National Statistics, 2022

 

🚨 Data accurate as of the date of publication –……

🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.

 

Source: Quilter Financial Planning – Essentially Mortgages Q1 2023

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