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A quarter of working adults without income protection would like to have it

17/10/2022
PROTECTION
  • Nearly one in five said they would struggle to pay their mortgage or rent if they couldn’t work for two months due to illness or injury
  • 26% of workers who do not have an income protection product would like to have it

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:

  • 15% of working adults had an Income Protection policy in place, while 12% had IP provided by their employer 
  • Over a quarter (26%) of workers who don’t hold an IP product would like to have one
  • 60% of 25-44 year olds without protection would feel more financially resilient if they had a policy that paid if they were unable to work due to illness or injury 

Many people do not have adequate savings if unable to work, leaving them vulnerable to financial shocks:

  • 26% of working adults have less than £1,000 in savings or no savings at all
  • Almost one in five (19%) would have to rely on their partner’s income to cover bills if they were unable to work
  • Only half of workers (49%) would be able to survive more than four months without an income. 

Mortgage holders are more likely than renters to hold an income protection policy

  • One in four (25%) mortgage holders have income protection compared to just over one in ten (11%) renters surveyed
  • 19% of UK workers would struggle to pay their mortgage or rent if they couldn’t work for two months due to illness or injury
  • But 24% of mortgage holders surveyed believe that they don’t need income protection 

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.

“The theme for Mental Health Awareness Week 2022 is loneliness, which affects many people at different stages of life. In particular, young people, self-employed workers and women have experienced isolation and financial pressures in some form since the pandemic began. As emotional wellbeing is often linked to financial resilience, we encourage people to discuss their struggles openly to maintain their mental health."

“At LV=, we believe that protection insurance is not only about paying claims; it’s about supporting customers from day one, when they are at their most vulnerable and providing emotional and practical support when they need it."

“We are proud to offer a range of mental health and medical support services for members. These include remote GP consultations and counselling via LV= Doctor Services for vulnerable customers who need extra support, and a dedicated emotional wellbeing helpline for young adults up to the age of 23, who may be children of our members, or policyholders.”
 
Mike FarrellMike Farrell, Protection Sales Director at LV=

About LV= support services

LV= provides a wide range of emotional, practical and financial options and services – at no extra cost - to help policyholders and their families deal with challenging everyday  situations, including: 

LV= Doctor Services (included as standard on all protection policies) with access to six expert medical services available through a convenient app including: — Remote GP 24/7 – appointments around the clock for every day health concerns through to serious conditions. 

LV= Member Care Line (included as standard on all protection policies) provides free and unlimited access to a 24/7 Member Care Line, including health and counselling services. This is operated by qualified professionals who can provide expert support and guidance when it's needed most. This could include advice on their medical condition, coping with the loss of a loved one or coming to terms with their medical diagnosis

LV= Member Counselling Line provides free day-to-day support for dependants age 16-23, while a  Legal Advice Line can provides free and confidential legal advice on a range of personal legal matters such as those relating to employment, consumer contracts, property issues, motoring, landlord and tenant, family and wills and probate.

Notes

* LV= surveyed 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in March 2022.