Worrying number of homeowners lack ‘appropriate protection’
Homeowners are being advised to protect themselves after a new survey revealed that more than 80% of all mortgage holders in the UK don’t have income protection.
Our Financial Services team is stressing the importance of having a protection plan in place to safeguard one’s financial future and that of one’s family in the event of unforeseen devastating circumstances such as redundancy, severe injury, long-term illness or worse.
According to the recent State of the Protection Nation report from Royal London, 81% of all homeowners have no income protection, while nearly half (42%) of mortgage holders have no life cover, and more than 70% have no protection in place should they be diagnosed with a critical illness.
Our Chartered Financial Planner John Freeman said, “In the event of a personal disaster, a substantial majority of mortgage holders have no financial protection plan to help safeguard their own future and that of their family.
“It may be awkward to consider, but for many family breadwinners their redundancy, or an unfortunate or tragic turn of events, would leave their family with limited financial options.
“The right protection plans can help safeguard the immediate and even long-term financial future. For example, a cash sum could help repay a person’s mortgage, while a regular income could help maintain the lifestyle to which a family may have become accustomed.”
The study, which was carried out on more than 2,000 adults in the UK, also identified some of the reasons people had for not using protection plans, with more than 70% of respondents saying they thought they were too costly.
John continued, “According to this survey, one in five working people feel they do need income protection, yet don’t have a policy. Most people think they can’t afford a plan, but the fact is there are affordable protection plan options available to all, and the stakes are simply too high for homeowners to put-off getting one.
“Fortunately, Newby Castleman offers completely independent financial advice, and has been offering insurance packages tailored to each individual client and their personal circumstances for years.”