A worrying number of people are failing to take out important products such as critical illness, life insurance and income protection cover, leaving them exposed to major financial risks, new research by Scottish Widows has found.
The provider's latest Protection Report, which surveyed over 5,000 people in the UK, revealed only 5% had an income protection policy in place to provide cover in the event of losing their job, despite over half of workers claiming that they would only be able to remain financially secure for up to six months. Some even claimed they would not be able to survive financially at all in the event of redundancy.
Almost two-thirds (63%) of people do not have any life insurance in place at all, whilst a massive 89% said they had no critical illness cover whatsoever.
Whilst a number of respondents said that they simply couldn't afford to take out protection products the report also suggested that many are choosing to bury their heads in the sand when it comes to safeguarding themselves and their livelihoods.
Over 40% of those surveyed admitted they had either not yet "got round" to sorting out life cover, or simply did not consider it necessary or a priority, whilst those who had protection policies in place said they had only done so when buying a home for the first time.
Katya Maclean, protection expert at Scottish Widows, warned of the financial implications of failing to take out adequate life and income cover.
"The value of protection is to provide peace of mind and to know that should the worst happen then you or your family have a financial safety net," she said.
"Whilst affordability cannot be ignored, and we know that for many it is a challenge simply to save money at the moment, reducing the protection gap in our society needs us to examine our priorities and attitudes as to what is most important."
You can begin your search for an income protection policy here. You can begin your search for a life insurance provider policy here
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