The coronavirus outbreak has hit businesses across the UK, leaving many individuals and families in a precarious financial position. The crisis has shown that financial hardship can strike when we least expect it, demonstrating the importance of protection cover.
Although billions have been pledged to support employees and businesses, some have slipped through the cracks of eligibility criteria. For others, the help is inadequate.
A financial lifeline
Never have we been so starkly reminded of the need for the safety net of protection cover. A recent YouGov1 survey about the pandemic, revealed that nearly a third (32%) of Brits currently fear for their future. Cover such as life insurance, critical illness cover and income protection can help lessen the blow of unexpected events. Note that some policies have qualifying periods that may rule out claims made within a certain period of taking out the policy or of becoming too ill to work.
Don’t make assumptions
According to Royal London’s2 State of the Protection Nation report, just 11% of people believe they’re likely to go on sick leave for more than three months. However, it also revealed that the actual probability of this is much higher, at 26% for men and 37% for women. Conversely, a fifth of respondents believe they’re likely to die during their working lives, even though the probability of this is actually much lower (4% and 3% for men and women, respectively). It’s therefore unwise to make assumptions about your need for protection cover. Critical illness and income protection cover could be just as valuable as a life insurance policy.
A weight off your mind
If you’re unable to work due to illness or injury, financial worries could hinder your recovery. Get in touch to chat about the best protection options for your individual circumstances.
2Royal London, 2019
This material is for information purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance or any other financial product, you must obtain individual advice regarding your requirements and general policy conditions. The presented information & data are valid at the time of publishing.
Source: Quilter Financial Planning – Essentially Mortgages Q2 2020