Current statistics show this is a time for people to review their Income Protection policies and those without this type of cover need to give serious consideration to the long term problems they may face according to the recent statistics.
Rise in long-term unemployment
The Office for National Statistics show that long term unemployment is a growing problem in the UK but people are not taking the steps needed to protect themselves.
The latest figures from the ONS have announced the level of people unemployed for the first quarter of this year rose by 27,000 to reach 887,000, the highest level since 1996.
Disability risk not being covered sufficiently
Met Life reveals that over two fifths (41%) of employees have been made redundant or suffered long term ill health during their working life. It equates to 20% of these being made redundant and 21% needing more than 4 weeks off work due to ill health.
Only 15% of people have polices to protect against ill health. While only 12% of people over 55 are protected by an Income Protection policy yet statistics are showing 51% of this age group have been made redundant or suffered from long term illness.
Older workers most at risk
With the government raising the age of retirement and State Pension being paid to people of a higher age this could mean that hard working people in their 50’s and 60’s could face financial difficulties if not covered by a relevant income protection policy when they are at a stage in their lives where redundancy and ill health are a higher possibility.
Specialists are saying many people insure their lives, cars and homes, but neglect to insure the one thing that maintains their lifestyle – their income.