Couple in their 20s have nearly two in three chance of being unable to work for two months or more
- Figures from LV= Risk Reality Calculator highlight threats to financial resilience
- LV= unveils new online report for advisers interested in protection
Figures from protection specialist LV= reveal that a couple in their mid-20s have a 63% risk of being unable to work for two months or more before they retire.*
The figures – produced from the LV= Risk Reality Calculator - are featured in the new LV= Fuel for Life online report for financial advisers specialising in protection.
The report offers tools and support for financial advisers and highlights how protection policies help households experiencing periods of financial hardship. It reveals that:
- LV= collectively paid £3.2m in Income Protection and Personal Sick Pay claims between March and October last year, supporting over 1,000 customers. Cancer and musculoskeletal conditions were the most commonly claimed for conditions.
- Over 193 LV= members who suffered financial distress due to Covid have benefited from payment breaks, resulting in £29,500 of waived premiums. LV= continues to offer payment breaks to those struggling to pay premiums until 30th April 2021, with cover remaining in place.
The LV= Risk Reality Calculator highlights the risks of people being unable to work for more than two months, suffering a serious illness or dying. The combined risk of a 26-year-old couple experiencing any of these events rises to 70%.
Designed to be used by financial advisers, it produces a personalised risk report for potential income shocks, helping advisers address unexpected scenarios such as being unable to work for long periods of time due to illness.
The coronavirus pandemic has highlighted the need for households to protect their income from illness and accidents. An LV= survey found that 4% of adults had bought a new protection product in the past three months, indicating that more are considering new policies to strengthen their financial safety net.**