Almost a quarter (23%) of respondents would not be able to cope financially for more than a couple of months if they were unable to work, according to research by Scottish Widows.
The research, based on responses from 5,144 working adults, also found that 8% of respondents would only be able to cope financially for less than one month if they were unable to work.
The survey also found:
- 42% of respondents affected by critical illness have to make lifestyle changes in order to cope with the financial impact.
- Just 4% of respondents have income protection in place.
- More than a third (37%) rely on two incomes in their household.
- Less than one in ten (8%) of respondents have a critical illness policy in place.
Esther Dijkstra, head of protection at Scottish Widows, said: “The ongoing struggle between short- versus long-term financial priorities continues to threaten people’s financial resilience, despite an awareness of the key points at which these change and the risk of savings running out should they become unable to work.
“Educating and informing [people] will not only build a clearer understanding of protection products and the importance of getting the right advice, but also help to improve the UK’s financial resilience, which will be of increasing significance from April next year when working age welfare support for mortgage interest and bereavement benefits are scheduled for reform.”