Survey: Lack of money leads to fall in numbers buying insurance
Consumers are cutting out protection policies as a result of financial hardship, according to a Friends First survey.
The insurance firm found that almost 70% of consumers have experienced a drop in household income over the past 12 months with 40% saying that mortgage repayments are their biggest financial concern, while a startling 45% fear that they or their partner could be at risk of losing their jobs in the next twelve months.
People are examining personal balance sheets carefully and while many people have opted to reduced ‘luxury’ expenditure others are reducing their level of insurance cover.
Up to 13% of respondents to the Friends First Income Protection survey said that they have cancelled insurance policies in the past 12 months, as a result of reduced income.
Despite these financial concerns there is significant uncertainty among consumers around what state benefits they are entitled to in the event of long term illness or disability, however a startling 27% of those surveyed said if they were unable to work, due to illness or disability for a long period, they would be have to rely on government disability allowance which would entitle them to a payment of between €196.00 and €201.50 per week.
While three quarters of those surveyed were aware of what income protection is and 69% of those surveyed thought that long term disability would cause them more financial hardship than the death of an income earner, less than 9% of people surveyed had an income protection policy.
