Research from Royal London suggests 5.2m mortgage holders who earn an income have no plan or protection cover in place to cover their mortgage repayments if they become too ill to earn.
The provider commissioned YouGov to survey 2,208 UK adults last week - 750 of whom were mortgage-holders and 443 earned their income. In UK population terms this equates to 10m UK adults and data from responses was extrapolated accordingly.
The study found 5.2m have no cover in place and that 2.6m mortgage holders did not know how long they could survive financially if they were too ill to earn. Half of relevant respondents estimated it would be six months or less.
Some 1.8m admitted they have not given thought to protection, while 1.1m said they wouldn’t know where to turn for financial advice if they hit trouble.
When asked who they would turn to for financial advice if they became too ill to earn 36 per cent would consult friends and family, but 21 per cent said they would not seek any advice.
The majority (56 per cent) would turn to a non-profit/charity or government body, while only a minority (15 per cent) would consult a financial adviser.
These findings come as the mutual joins charity-led protection awareness initiative Seven Families. The Seven Families initiative is a charity led campaign that provides tax-free income for a year to seven people who have lost their income due to a long-term illness or disability.
Debbie Kennedy, head of protection proposition for Royal London’s intermediary division, said: “Our research highlights how many UK mortgage-holders are in a vulnerable position – unsure how they’d cope financially and who they would turn to for financial advice.”
peter.walker@ft.com
