Many of us are likely to know somebody who fell ill this year, suffered a bereavement or lost their job. We have seen firsthand the impact even a short absence from work or period of unemployment can have on our financial resilience.
And yet, nearly a third of respondents to a recent survey1 say they would only take out protection insurance if they fell ill themselves. It seems the pervasive attitude of ‘it won’t happen 10 to me’ is preventing people from taking out vital cover.
Too little, too late?
Mortgage holders said they would only consider purchasing protection cover if they fell ill (31%), changed employment status (25%) or had an accident (24%). This would be too late to secure financial assistance from insurance, as most policies do not offer backdated cover. Despite these attitudes, the survey also revealed that one in seven (14%) survey respondents regretted not taking out a protection policy in the past.
Finding the right policy for you
Contrary to popular belief, protection insurance doesn’t have to be hugely costly, and it can vastly improve your resilience to financial shocks.
1 MetLife UK, 2021
Source: Quilter Financial Planning – Essentially Mortgages Q3 2021