60% of the adult population say they do not have any financial protection in place should the worst happen, according to figures released from Bright Grey’s annual Financial Safety Net report.
Despite the problems that could arise from a loss of income, 43% of people without insurance have said that the cost of cover is too great an expense to bear.
12% have admitted that they prefer to spend their money on other things, with the average family spending £17 on their pets, £7 on chocolate and £28 on digital television services every month.
24% accept that they would have to drastically reduce their living costs in order to survive, in the event that the main breadwinner was diagnosed with a serious illness, suffered a disability or died.
Jennifer Gilchrist, senior product development manager at Bright Grey, said: “Everyone needs to treat themselves from time to time but by not building up a financial safety net, many could find their entire quality of life compromised by illness or even the death of a family member. It is particularly concerning that a quarter of all people have not even considered what they would do in the event that something like this might occur.”
One in five people (22%) would rely upon their savings in the event their income should cease. The average amount of savings that Britons can access immediately is £9,883, which is a £1,170 increase on figures from 2012.
Meanwhile, 25% has not considered how they might cope with a ‘worst-case scenario’, and a small minority plan to rely exclusively on government support.
Gilchrist added: “The high cost of living combined with a lack of adequate protection means that many could find life extremely difficult without a source of income. Watching a loved one experience an illness, or losing a family member, is difficult enough without additional financial stress. Ensuring that a realistic and viable contingency plan is in place will ensure that families can have peace of mind.”