A recent report into financial resilience has found that while around two-thirds of homeowners have life cover, just 6% of female renters are protected against a loss of income.
Huge disparities exist in our ability to withstand a financial shock across the wealth and gender divide, with protection – and especially income protection – seemingly low down on Brits’ list of priorities.
This could be partly due to persistent myths surrounding the insurance and protection industry. Keep reading to find out more about these myths, including why they persist, despite evidence that seems to disprove them.
Insurers paid out more than £20 million a day during 2023
A prevalent protection myth is that your insurer won’t pay out when you come to make a claim. And yet, calculations from the Association of British Insurers (ABI) suggest otherwise.
Figures confirm that insurers paid out a record £7.34 billion to people experiencing bereavement, illness, and injury in 2023. That’s around £20.1 million a day.
Critical illness claims totalled a record £1.2 billion, a £136 million (13%) increase from 2022.
Payouts for income protection were also up on 2022 figures, reaching £177 million. This marked a £3 million (2%) increase compared to the previous year. The average claim paid out £9,425.
Across all protection products, the overall acceptance rate hit 98.3%. Of the 1.7% of claims that didn’t payout, the most common reasons for declined claims included failure to disclose pre-existing medical conditions and not meeting policy definitions.
This underlines the importance of diligent research and understanding the policy you’re taking out, helping to ensure that you disclose everything that might be deemed relevant.
Working with professionals can help here, so be sure to get in touch if you need help with any element of your financial protection.
The unexpected can happen at any time but being prepared can provide peace of mind
It’s easy to think “it won’t happen to us”. But we know that the shock of an accident or illness can occur at any time. Having protection in place won’t reduce the worry following an accident or diagnosis, but it could lessen your financial stress at an already difficult time, providing peace of mind.
Royal London’s recent survey into the gender pension and wealth gap highlights a huge disparity in protection provision across the UK.
While 24% of male and 16% of female homeowners have some form of income protection, this figure drops to just 6% for female renters.
Income protection pays part of your normal income if you have to stop working because of an accident or illness. The money can help toward household bills and other necessary outgoings until you’re back on your feet. This could help to keep a roof over your head and could be especially important if you’re self-employed.
We can search the whole of the market for the right plan for you… and at the right price
There’s no “average” cost for protection. That’s because you, and your personal circumstances, are unique and the protection you need is unique too. But that doesn’t mean it needs to be expensive.
Cover can start from less than £10 a month but the most important thing is choosing the right policy for you.
Get in touch and we can look into your current protection provision, identifying any potential gaps and helping to find exactly the right policy to fill them.
Get in touch
If you have any questions about your current financial protection or the potential impact of any future shocks, speak to us now. Get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100 to see how our team of professionals can help.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
