Protection is low on the agenda for people purchasing new homes with statistics revealing that only 11% view it as a top priority. This is in contrast to the 20% of people who rated their top priority as furnishing their home. Yet even with these statistics over half of people do worry about leaving their partner and family with a mortgage debt if they die.
Death has become a taboo subject for many and I get the impression that although buying a house is a huge responsibility, people would prefer to focus on all the positives at this time and not consider any negatives such as premature death.
Unfortunately, although people are aware that they are taking on considerable long term debt they are less prepared to recognise the risks that they are taking, with only half of mortgage holders having a suitable life policy. To make matters worse this figure represents an almost 10% decrease from the previous year, with only 17% having critical illness cover and 7% income protection plans that are again down from the previous year.
These figures are worrying when half of people say that, if they had to cover bills if they or their partner could not work, they would only be able to last a couple of months at most. It appears that most people overestimate the amount of money they would receive from their employer and the state. Some 64% believed their employer would pay them either a full or part salary if they were off for an extended period of time. Unfortunately the reality for most people is Statutory Sick Pay for up to 28 weeks of £87.55. Some may receive more but this depends on the company they work for.
With household expenditure on average around £1,400 per month even before mortgage increases it is more important than ever to be prepared and protect your loved ones. If you don’t have suitable cover it is worth getting cover now to avoid risking your family loosing their home.
There are many different types of life cover and many different types of income protection that cover you against sickness and accident. So the message is that cover can be tailored to meet with all budgets. If you are struggling to cover all bases with regard to protection, for as little as £10 per month I believe you can at least have some cover and protect your family rather than trusting to providence. I think it is a good idea to consult an IFA who specialises in protection to enable you to get the most comprehensive cover at a price you can afford and give you and your family peace of mind.
Kieron Bassett
18th August 2014
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