Payment insurance and income protection—don’t make excuses!

Seven out of ten people believe income protection is too expensive, according to a recent report by Royal London.

In their annual 'State of the Protection Nation' report, which investigates public perception of the protection industry, Royal London surveyed 2,002 nationally representative UK adults over the age of 18. And the responses they received were very interesting...

While many customers are aware of the payment protection on offer, actually convincing them to take out cover remains difficult.

Of the 2,002 people surveyed, 46% felt it was unlikely they would go on sick leave for three months or more. This "it won’t happen to me" mentality was further evident throughout the report; 33% thought it unlikely they would contract a serious illness, while 44% believed they were unlikely to have an accident which would leave them unable to work.

Incredibly, Royal London found just 5% of those surveyed had income protection through their employer. This figure is shockingly low, especially when compared to the 58% majority who felt payment protection was unnecessary.

However, many consumers do recognise the need for income protection. 20% admitted they didn't have a policy, even though they acknowledged its importance. However, this passivity could cause them problems in the future...

The chance of being off work for two months or more before the age of 65 is significantly higher than you may think.

In fact, statistics claim men face a 26% chance, while for women it's 37%. Yet in their report, Royal London found the majority of mortgage owners (71%) would have no protection if diagnosed with a critical illness. So should more people consider income protection or critical illness insurance?

“The research reveals that the industry has work to do, to change people’s mindset, so they see protection as a necessity instead of something they don’t need," says Toby Bainbridge, head of protection solutions at Royal London.

“Sadly it’s only when illness strikes or an accident happens that people realise how valuable the financial protection from an income protection or critical illness plan can be."

If you were off work for illness or unemployment, how many months could you afford to pay the monthly mortgage and household bills?

Ideally everyone should have some form of income protection in place. Without your income, you are unable to sustain the lifestyle you enjoy. Vincent Burch offer a range of policies to protect you from the worst consequences of losing your job, or being unable to work due to accident or sickness.

To find out more information, please call us on 01603 340 644. You can also browse our wide range of insurance services, including critical illness insurance and income protection.