Protecting Your Family – Myths Exposed and the Reality in Figures

protecting your familyNo one likes to think about the devastating impact that serious accidents, injuries or death could have on their family. The reality is that disaster can strike at any time, and when it does – it’s families with no plan in place and dependent children who bear the brunt of the impact, with life-changing, lasting consequences.

What would the financial impact be on your children if you lost income as a result of illness or death?

In this post, we take a look at the findings of a recent report (March 2017) from insurance provider Aviva, examining families’ worries, preparedness and expectations when it comes to protecting their families, against the realities and real life consequences.

Key Findings – Expectations vs Reality

The report made some key findings about parents with dependent children:

  • 42% worry at least once a month about what would happen if their main breadwinner lost their job
  • 76% have no plan for dealing with lost income due to ill health
  • 68% have no plan for dealing with the death of themselves or a partner
  • 57% trust that the government would provide support
  • 50% trust that employers would provide support

The comparison against the realities of those who had experienced loss of income is stark

  • 27% of people have experienced loss of income due to ill health, serious illness or death of a partner
  • 19% of people who have lost income for health reasons had to downsize, move back in with family, rent or became homeless
  • 6% took on debt from a non-high street lender
  • 26% recovered financially within 2 months
  • 20% don’t think they will ever recover, or have no idea how long this will take

Protection Figures and Affordability

Currently, UK families have the following personal and family protection in place:

  • 46% have life insurance
  • 45% get sick leave from an employer
  • 35% have a Will
  • 35% have death in service benefit from an employer
  • 18% have critical illness cover
  • 13% have income protection cover

One of the key reasons given by those who don’t have protection in place is affordability:

  • 37% believe they cannot afford Life Insurance
  • 37% believe they cannot afford Critical Illness Cover
  • 35% believe they cannot afford Income Protection Cover

Lifestyle expectations

The average family believes it would be able to sustain its current lifestyle for 5 months if the main income earner was unable to work. However, further analysis shows that this simply isn’t the case.

The reality is:

  • 45% would not be able to maintain their existing lifestyle for a single month should the main breadwinner lose their income
  • 36% could not get through a month without external financial support
  • 24% have no savings
  • 5% of homeowners would have to sell up after just 6 months

Report conclusions

Ultimately, the latest Aviva report reveals just how unprepared most families are against the unexpected loss of income. It also shows the potential impact on family lifestyle and financial security that ill health and death can cause.

Finally, it shows that perceptions about affordability are one of the main barriers preventing families from investing in the protection they need.

The reality is that effective protection can be affordable – and that investing in life insurance, income protection and critical illness cover will make a huge impact on the stability of your family finances should the worst happen.

Affordable Protection from Sterling

Whatever your circumstances, Sterling Partnership specialise in providing high quality, cost-effective financial solutions for you, your family and your business.

Our experienced team have an excellent track record in providing families with the right levels of high quality, affordable protection to secure family finances in the event of a crisis.

As part of our service, we offer a free, no obligation personal protection review, designed to provide you with honest advice and expert guidance, so that you can make the right decisions when it comes to protecting your family. This is available to anyone, whether they have existing policies in place or not.

For further information, or to book your free, no obligation initial meeting, get in touch with us today on 01482 863127, or by email at webenquiries@sterling-partnership.co.uk.