Almost one third (32%) of UK adults have experienced a serious financial shock in the past five years such as losing their job or being unable to work due to injury – but only a third (35%) had the right insurance in place to cushion the financial blow, according to new research from the Money Advice Service.
With many families just one step away from serious financial struggles, the Money Advice Service and Association of British Insurers have come together to encourage the UK to build up a rainy-day savings fund or consider relevant insurance policies to safeguard themselves and their loved ones against financial trauma.
There is still a large gap between the number of people who experience unexpected events and those who have a contingency in place to safeguard their finances. Only a limited number of UK adults have a protection insurance safety net – such as income protection – with just one in five (17%) adults considering it a necessity – despite the same amount (18%) knowing someone whose standard of life was severely impacted due to not having protection in place.
8% of people aren’t concerned about what happens to their family’s finances after they are gone. However, 67% of adults confirmed they have people reliant on their income, with children (35%), spouses (26%) and parents (6%) topping the list of dependents. Furthermore, 44% agreed that protection insurance is important to protecting their family.
Additionally, only one in four adults (39%) are confident that they enough money saved to cover unexpected costs.