Over two thirds (67 per cent) of UK adults would struggle financially if they were unable to work, research from Aviva has revealed.
The research found that despite that people would struggle without an income, 71 per cent of UK adults said they have never investigated getting an income protection product.
Of these, around one in five (19 per cent) said they had never heard of the product, a figure which rose to 25 per cent among the Gen Z demographic.
Aviva protection portfolio distribution director, Daren Boys, said: “Our research confirms that most people recognise that they’d struggle financially if they were unable to work due to ill health, however, there’s still a heavy reliance on savings or family members to cover their living costs.
“Income protection provides a much-needed safety net.
“However, Aviva’s research confirms that lack of awareness continues to be a key barrier to income protection sales.
“Although people are more likely to consider income protection when they buy a house, very few people would think about taking out an income protection policy when they move into a rental property.
“There’s a real opportunity for advisers to help explain the benefits of income protection for those who are renting.
“This can open the door to starting conversations about income protection with the younger generation now, rather than needing to wait until individuals reach traditional milestones like buying a house.”
The research also found that just under half (47 per cent) of those surveyed said they would rely on their savings to cover their living costs if they were unable to work due to long-term sickness.
Slightly fewer (44 per cent) would cut back on non-essential expenditure and a third would control their spending by shopping for lower-cost brands.
Around 40 per cent would look to find money from elsewhere - either by borrowing from friends and family, relying on someone else to pay the cost, or by taking out a bank loan.
tom.dunstan@ft.com
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