More UK families are still grossly underinsured when it comes to income protection or critical illness cover combined, according to Aviva’s Family Finances Report.
While UK families have some level of understanding about the benefits of insurance policies – such as life insurance or cover for pets – the proportion of UK families with either income protection (8 per cent) or critical illness cover (11 per cent) is at 19 per cent.
According to Aviva, the proportion of families who have life insurance equates to roughly four out of 10 families. This compares with 20 per cent for pet insurance across the nation.
Louise Colley, managing director for protection at Aviva, said: “It is fantastic to see that we are a nation of animal lovers and so many families are taking the important step of protecting their pets.
“However, it is a concern that Britain is not always quite as prepared when it comes to safeguarding our own financial futures.
“A payment from an income protection or critical illness plan can allow people to focus on their health, knowing that money matters are taken care of.”
Adviser view
Jeremy Edwards, associate partner with Leicestershire-based Martin Redman Partners, said: “There is an assumption that, with illness, the state will pick up the tab.
“Most people, as long as they do not have too much absence due to illness, will probably just about cope without cover, until it becomes serious – and then they will realise they need cover in place.”
