A survey by Zurich shows just one in five have income protection cover in the event of becoming ill or disabled to work.
A poll of 1,000 people found as many as 42 per cent have experienced income loss in their working lives due to serious illness.
According to Zurich, the findings indicate people still have an ‘it wont happen to me’ attitude despite having suffered the consequences of being unable to earn cash first hand.
A total of 19 per cent of respondents claimed to have a good knowledge of income protection products, suggesting much more needs to be done to raise awareness of the product’s benefits.
More than a quarter of respondents said they would be willing to spend 5 per cent of their income on protection, though cover can be bought for much less.
More than half - 56 per cent of respondents - said they would prefer it if the government covered income loss in the event of illness, followed by their employer at 37 per cent.
Nearly 47 per cent of UK respondents also reported being willing to accept a better benefits package including income protection benefits rather than higher wages, suggesting a greater role for employers in helping to protect their employees financial well-being.
Gary Shaughnessy, global life chief executive at Zurich, said: “As we witness a shift in the burden of responsibility from the state to individuals, people need to take more responsibility to protect themselves and those they love.”
Justin King, chartered wealth manager and chartered financial planner at Dorset-based MFP Wealth Management, said: “Everything has its place on your priority list and income protection insurance comes low down on most people’s.
“The way to get more people covered is with group schemes funded by benevolent employers or through benefits packages.”
ruth.gillbe@ft.com
