The report also shows that 31% would be forced to drastically cut back on living costs should they or the main breadwinner be unable to work for a prolonged period of time.
Scottish Provident has launched its Financial Safety Net campaign, to encourage consumers to take action, seek independent financial advice and create their own ‘financial safety net’. The campaign will hopefully raise consumer awareness and understanding of the long term benefits of protection products.
Currently 35% of the nation has life cover, but the levels of other protection products are drastically lower. Only 13% have critical illness cover, 9% have income protection and a mere 5% have unemployment benefit – an essential for many in the current economic environment.
Many consumers (39%) claim the number one reason for not having any cover was due to it being too expensive; revealing that there is still wide-spread misunderstanding of the various products available and their relative cost – especially as this figure rose to 47% of those with dependents. Worryingly, 17% claim they didn’t know why they don’t have any protection in place for themselves and their family.
Susan Barclay, head of marketing, Scottish Provident commented: “With the majority of Britons without any form of protection in place, many are taking a substantial risk with their own and their family’s livelihoods. Therefore, we are launching the Financial Safety Net campaign in order to encourage more people – especially those with dependents – to take action and put their own ‘financial safety net’ in place.
“The campaign is aimed at encouraging consumers to assess their personal situation and put emergency savings in place, but also for them to go and visit an IFA to ensure they will be able to maintain their standard of living should the main breadwinner be unable to work. We’re calling for IFAs to pledge their support to encourage all those without a financial safety net to put one in place and have peace of mind should the worst happen.”