Many people in the UK are not prepared to pay their monthly housing costs if they’re unable to work due to illness or disability. This is according to findings from Royal London’s latest report.
Royal London’s research shows 8 in 10 homeowners paying a monthly mortgage do not have income protection in place, and two thirds have no protection should they be diagnosed with a critical illness, risking their financial stability if they are unable to work because of a longer-term illness.
While the numbers who have safeguarded the family home if they die sooner than expected are more encouraging – two thirds have life cover – the report says it is worrying that so many do not have a policy to replace their income if they are unable to work through illness or disability.
Of course, homeowners aren’t the only ones with financial commitments who need to keep a roof over their head. Tenants also need to pay their rent and can be just as exposed without insurance in place, yet the statistics make for even more concerning reading. Less than a third of renters have life cover, and only 6% have income protection.