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Research* from protection specialist LV= highlights how millions of self-employed people would have to carry on working if they suffered an illness or injury.
The Reaching Resilience report examining financial resilience reveals:
Traditional workers are still vulnerable to financial shocks, mainly because of little savings to tide them over if unable to work:
Protection insurance is seen as a key step to achieving financial goals
Over half (56%) of UK working adults surveyed said they would feel more financially resilient if they had insurance that paid an ‘income’ if they were unable to work due to illness or injury.
Awareness of protection products has risen since the pandemic and led many to reassess their financial and personal priorities. When compared with people without a protection policy in place, policyholders were more likely to see no impact on their financial situation if they were to experience a major health problem. For those aged 25-44:
“It is good to see that many consumers understand the need for financial resilience and protecting their income if accident and illness stops them working.
“However, too many self-employed people do not have any insurance in place to protect their income leaving them financially vulnerable if they are unable to work.
“The data reveals that many UK adults believe that they can rely on their savings, without taking into account how quickly this could truly last them or take to build these back up. Many would last only a couple of months before they were unable to pay their mortgage or rent.
“Protection and financial resilience is an important aspect of planning and it’s a good idea for people to consult a financial adviser to find the right policies that protect their income.”