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47% of Brits without protection insurance policies

26 November 2008 / by Rebecca Sargent
Almost half of Brits are going without protection policies such as life insurance and critical illness cover, new research from Barclays has revealed.

According to the research, although fear of unemployment and debts is rife in the UK in the current climate, people are not providing themselves and their families with a safety net.

In fact, cushions such as life insurance and income protection are being pushed to the bottom of people's priorities, as more than half of Brits worry over their ability to maintain their outgoings.

Almost half of those questioned have no protection in place at all, while 52 per cent have no life insurance and 75 per cent do not have critical illness insurance.

Commenting, head of customer proposition at Barclays Financial Planning, Alison Tattersall, said: "When finances are tight it is often responsibilities like protection policies that fall to a lower priority, and of course these policies protect outcomes that people don't want to think about.

"But people must consider the financial consequences of what would happen if they were unable to work, or their dependents' situation if they died, it would be far worse than any concerns they currently have over struggling to meet their outgoings."

The Barclays study highlights how unprepared Brits are for a recession, as 60 per cent have no savings at all. In addition, 80 per cent have no idea what they would be entitled to in state benefits if they did lose their job.

The research also showed that of those who do have protection policies in place, more than half did not seek advice before taking it out, and 70 per cent don't know or only have a rough idea what level of payout their policies would offer.

Ms Tattersall added: "This could clearly mean people end up without the right cover for their needs, which is often just as bad as having no protection at all. We urge people to seek professional advice and review the level of protection insurance they have to cover themselves or their family."

© Fair Investment Company Ltd