Research from protection specialist LV= has explored attitudes to income protection to coincide with Income Protection Awareness Week (IPAW).
Our research* examining financial resilience reveals:
Many people do not have adequate savings if unable to work, leaving them vulnerable to financial shocks:
Mortgage holders are more likely than renters to hold an income protection policy
LV= paid £13.6 million in new and on-going income protection claims in 2021. The most commonly claimed conditions were Musculoskeletal issues (20%), fractures (20%) and cancer (17%), representing nearly 58% of all income protection claims.
“As the impact of the cost of living crisis deepens, people are becoming aware of their financial resilience and the value that income protection insurance brings. With energy bills and mortgage and rent payments rising, increasing numbers of people are worried about how they would pay their bills if an accident or illness prevented them working.
“Income protection remains a flexible way to maintain a financial safety net if someone is unable to rely on cash savings. Budget income protection plans with 12 and 24 month options provide an income for specified periods while giving more flexibility to customers.
For those facing financial hardship and unable to cover premiums, in certain circumstances LV= payment breaks can offer relief without sacrificing their cover.”