The life and pensions mutual insurer LV= has released a report highlighting how families’ finances could handle the event of an accident or an illness that would prevent them from being able to work.
In its latest Reaching Resilience report, LV= found that many parents showed concern regarding their capability to support their family should they experience a problem relating to their health. It was also found that the average working adult supports three people with their income while 10% have five or more depending on them.
“Our latest Reaching Resilience research found that many parents are feeling unprepared if they had to take time off work for health reasons,” said Mike Farrell, protection sales and marketing director at LV=.
About a third of employees in the UK admitted that the financial security of their families would be impacted if they get injured or if they experience an illness. As a critical illness diagnosis could lead to them being out of work for several months, this can cause problems when it comes to paying for childcare, a monthly mortgage, and/or rent payments. Despite this, the report found that only one in eight people has income protection coverage that they pay for themselves.
“It is no surprise that parents are concerned about the wellbeing and happiness of their loved ones, yet some people will be unprepared for financial difficulty if they do not have the right financial safety net in place,” said Farrell.
“Conditions such as cancer, heart attack or a stroke can have a devastating financial and emotional impact on families... We continue to support advisers with online tools like the LV= Risk Reality Calculator, which highlights protection risks and supports conversations with clients around their financial resilience to show how protection insurance can help them,” he added.
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