‘Vast Majority’ Of Renters Have No Protection Insurance In Place Against Financial Shocks
by Liz Seyi Digital marketing managerIf you are a renter reading this blog post, have
you ever stopped to consider what you would do if you were rendered unable to
work, and therefore also unable to keep up with your monthly rental payments
and other bills?
We ask this question, because a recent survey by a
well-known life insurance provider has once again thrown light on the subject
of the millions of renters out there who lack a financial safety net in the
event of the worst happening to them.
What exactly did the survey
discover?
The poll that we are referring to was recently
reported on by the Financial Times’ FTAdviser website. Specifically, the
insurance specialist found that just 5% of renters had taken out critical illness insurance, which
is the type of cover that provides a tax-free lump sum in the event of the
policyholder suffering a serious illness such as cancer.
It was also discovered through the research that a
mere 3% of renters had an income protection policy, and even life insurance was
only held by one in four (24%) of those quizzed.
That’s not a great picture for tenants, although
it’s worth noting that homeowners didn’t fare much better in this regard. The
FTAdviser said that just 11% of those who owned their own home had taken out
critical illness insurance, while 7% had income protection. A third, 33%, had
arranged a life insurance policy to provide a one-off tax-free lump sum in the
event of their death.
Renters shouldn’t assume they
will never need protection cover!
The above situation may be especially worrying for
renters, though, given that it is people in this category who typically face
higher housing costs. Indeed, it has been said that while homeowners fork out
an average of £525.90 a month to cover their mortgage responsibilities, renters
typically pay £658 in rent every month.
When one considers this alongside the claim by
almost a third (31%) of renters that they have previously taken an extended
period of unpaid time off work as a consequence of illness or to care for a
relative or friend, it suddenly becomes obvious just how crucial the right
protection insurance could be.
This makes it all the more concerning that when the
survey respondents were asked why they had not taken out life insurance or critical illness insurance, 21% of renters said it was not
a financial priority for them. The equivalent figure for homeowners was 16%.
Are statistics like the above putting you in mind
of your own past attitude to protection insurance, and making you wonder
whether now is the time to look seriously at investing in a suitable policy? If
so, we provide a completely free and no-obligation service to help you make
sense of the possibilities on the market today; simply call 0800 316 6917 to get
chatting to us.
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Created on Jun 3rd 2022 07:18. Viewed 196 times.