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Co-operative Insurance concerned by income protection apathy

08 December 2006
A leading financial services provider is concerned by new findings that indicate that the majority of people in their mid 20s and early 30s do not protect their incomes with insurance.

Co-operative Insurance (CIS) conducted a survey that has revealed that 57 per cent of 25-34-year-olds do not have income protection insurance, meaning they would struggle to afford the unfortunate event of a prolonged period off work.

The survey of 1,500 people UK-wide found that consumers are not boosting their income protection cover, despite life-changing moments like getting married, buying a house or having a baby.

Although women are more conscious of the possible need for income protection than men, only a quarter of the poll felt that starting a family was a reason to insure against loss of income.

CIS' head of protection Fiona Jackson said: "It can be hard to visualise a future where we are not as healthy as we are now, which is why many of us never get around to protecting ourselves fully."

The findings are born out by a study from independent research firm Defaqto last month, which found that while 1.5 million people bought disability insurance last year, less than ten per cent took out income protection cover.

Defaqto said that an aura of mistrust surrounded income protection insurance, with customers convinced that insurers are unlikely to pay out in the event of a claim, and underwriters believing that people prefer illness to a hard day's work.

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