Income Protection 

Britons protect pets but fail to insure themselves

Britons protect pets but fail to insure themselves

Britons are more likely to take out pet insurance post-Christmas than make a New Year's resolution to get income protection or critical illness cover.

According to protection specialists at LV and Royal London, people are far more likely to protect their pets and belongings than they are to get vital protection for their family and finances in 2018.

Ian Smart, product architect at Royal London, said: "Statistics from Mintel show us people are more likely to insure their pets and their mobile phone than themselves.

Chris McNab, protection product manager for LV, said: "With many people buying or housing a pet this festive season, it is likely the vast majority will be considering taking out pet insurance should something happen to them.

"LV understands that owners want to protect their pet like a family member and give them the cover they deserve, and this is a very sensible option with ABI data showing the average pet insurance claim is around £700 a year.

"Yet, while insurance will be the automatic choice for many animal owners, too few people apply the same logic to their own wellbeing and income."

Mr McNab said income protection, for example, can give consumers peace of mind if they were unable to work for a period of time; however, just one in 10 people have this protection in place. 

In LV's 2017 Income Roulette research, the provider found: 

  • One in 10 people have income protection insurance.
  • The most common reasons people don’t have income protection insurance are thinking that it is too expensive (27 per cent) and assuming that it won't pay out (20 per cent).
  • A third of people aren't confident they could handle a personal financial crisis.

According to Mr Smart, ignoring the inevitable will not help people if they have to go through such a crisis.

He said: "Sadly we are not invincible, but people are avoiding confronting the reality of the risks that we could get ill or have an accident and need a financial cushion to protect us.

"Using tools such as our critical illness report, advisers are ideally placed to put into perspective the risks we face compared to those we insure."

In August 2016, research carried out by Mintel on behalf of Royal London, found 49 per cent of Britons were likely to insure their pet, while only 8 per cent of the 1,152 UK adults surveyed said they were likely to get critical illness cover.

This is despite a high rate of prolonged absence due to serious illness or accident.

In 2017, the Health and Safety Executive reported that an estimated 137.3m working days were lost due to sickness or injury in the UK the previous yea

The warnings from LV and Royal London came as figures from Sainsbury's Bank revealed 10 per cent of UK adults planned to get a new dog or cat during Christmas 2017 and the New Year. 

The bank commissioned Opinium Research to survey 2,001 nationally representative UK adults aged 18 plus between 23 and 27 November 2017. 

Of these, more than 5 per cent were considering buying a puppy or kitten, while 3 per cent intended to give a home to a rescue pet. The remainder were sourcing their pets through other means.

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