Cover should be for life, not just your holidays - Income protection - News - Moneyfacts


Cover should be for life, not just your holidays

Cover should be for life, not just your holidays

Category: Income protection

Updated: 26/11/2012
First Published: 16/07/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
People have been urged to arrange insurance cover for life rather than just for their holidays.

As the holiday season fast approaches, the traditional rush for travel insurance to cover against accident or illness and for peace of mind is well under way.

However, Friends Provident says that while 81% of Britons will have travel insurance in place when they go abroad, less than a third (31%) have some form of protection cover in the event they become ill or are unable to work.

Given the main reasons behind taking out travel insurance are broadly the same as those for taking out income protection, it appears people might not have thought the situation through.

"It is concerning that people place such an emphasis on the short term rather than the long term when it comes to their well being," said Ed Stuart-Brown, head of protection sales at Friends Provident.

"Having insurance while they're abroad is a good thing, but what happens if they return home and perhaps become unable to work due to illness or injury?

"They will find it a real struggle to make ends meet and if the absence is prolonged the very last thing they will be worrying about going forward is holiday insurance!"

Of the people surveyed, only 27% said their employers would provide sick pay if they were unable to work for six months.

A mere 13% said they had a payment protection insurance policy to fall back on.

"These statistics really are worrying," continued Mr Stuart-Brown.

"In a climate where people are already under financial strain, the last thing they need to worry about is how they could afford to keep a roof over their heads in the event they are unable to work due to an accident or illness.

"By taking out some form of protection insurance such as a critical illness or income protection policy, people can have the financial freedom to continue living the lifestyle they are accustomed to and focus on getting better."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

More people protecting their income

Nobody likes to think about what would happen if they were unexpectedly unable to work. Thankfully, research from the ABI shows that an increased number of people signed up to income protection policies last year.

Are you financially prepared?

Long-term ill health is never a nice thing to contemplate, but if you fail to be prepared for such a scenario, you could be putting your finances in serious jeopardy, with research finding that far too few people have suitable protection in place.

Do you have a financial back up plan?

What would you do if you couldn’t work for any reason? Could you afford to cope financially? Chances are, you’d find it a struggle, which makes it particularly worrying that just 29% of workers currently have a financial safety net in place.