Talking is the key to protection.
British Friendly’s 2019 Claims Report has thrown up some interesting statistics. As a mutual, the organisation has been trading for 117 years providing protection cover.
As well as uncovering some of their more unusual claims, for example, one for cat scratch fever, the report highlights some concerning ones:
- Only 1 in 10 people are covered by Income Protection in the UK
- 11% of claimants were under 30
- 13% of adults have no savings and a further 24% have less than £1000
- 1,202 claims were paid in 2018 amounting to £2.95m
Looking at these statistics as a whole shows either the majority of the nation have savings stashed away for a rainy day or that we’re woefully underinsured. For those 37% of people who have little to no savings, the prospect of losing a much relied upon income must be quite daunting. For those relying on savings, the question must be asked as to whether having income protection would be a better option. After all, saving and protecting are both prudent so why let your savings diminish due to unforeseen circumstances?
Perhaps one of the more surprising statistics lies in the 11% of claimants being under 30. Traditionally, income protection is often thought of as being appropriate for those in their later years. However, our insured millennials are perhaps a little savvier with their thinking and have learnt at an early age that it’s no use saving if you don’t protect what you have to begin with.
Saying that it is only 11% of that sector of the population, leaving up to 89% footloose and fancy-free. Undoubtedly there will be a proportion of those who do have insurance but thankfully haven’t needed to claim. However, the statistics still indicate that a large proportion of millennials are shying away from insurance.
Some factors can be attributed to being younger. At this stage in life, people are more likely to be moving jobs frequently, travelling or starting to save for a deposit. An increase in life expectancy may also mean the average 18 to 30-year-old may not consider income protection important. Sadly, it’s often not until we have a health scare or lose an income that we realise what is important.
Various campaigns have surfaced around the UK to encourage the younger population to talk about awkward subjects including finances, illness and death. Believing the key to insurance is open, frank and practical discussions between parents and children, the hope is that this will lead to a better-protected nation as a whole.
Should you wish to find out more about income protection, our expert advisers are on hand to confidentially discuss matters