Plan B?....what Plan B?

A mere 4% of people in the UK have income insurance, showing a dangerous lack of concern for the unpredictable economy. 

The YouGov plc survey, highlighted that, despite the recession, people are still overestimating their job security and have no plan B should they end up unemployed due to illness or redundancies.

The survey has presented some surprising statistics but this one, showing a major lack of caution, has got to be one of the more worrying ones.

Individuals appear to be unprepared for their future and have no sensible plan in place to react to events that are out of their control.

The results also revealed that a quarter of the respondents said they would not last longer than a month on their current savings.

This sadly shows complete lack of forward planning and the ever present assumption that the State will help to a sufficient level – when in fact the level to which they will help, would roughly pay the food bill of an average household, and that’s it….not council tax, utilities, mortgage costs, car costs etc

The survey, carried out in January of this year, also found that 63% of respondents thought they could either not afford income insurance, could not see the value in it or have never even considered it.

There is clearly a lack of education related to income insurance and confusion with other products in the market.

This is completely different to single premium PPI, which has become a regularly complained about product in the insurance industry. PPI is sold to help cover payments on specific loans and credit cards in the event of unemployment or sickness.

Income insurance allows people to protect their actual income and offering wider protection should regular income stop suddenly. This helps cover any outgoings and is a standalone product that does not need to be purchased alongside a credit agreement.

------------------------------------------------------------------------------------------

If you want to join me in the 4% that have their income protected, feel free to get in touch – mark@themortgagemonkey.co.uk

Thanks for your attention.

Mark