Barclays Reveals Consumers Treading Without Financial Safety Net
A significant number of Britons are attempting to manage their finances without a safety net, it has been reported.
In research carried out by Barclays Financial Planning, it was revealed that some 47 per cent of adults do not have any form of protective insurance policy – such as critical illness and income protection – in place. As such, it was stated that consumers are leaving both themselves and their families exposed financially should health issues, job loss or even death strike them.
The firm points out that such a figure comes despite about half of Britons stating they are concerned about their ability to manage their outgoings over the course of the next 12 months, with 43 per cent reported to be most worried about the risk of unemployment or their debts – which may have been accrued through bad credit loans or store cards.
As such, this could may mean that should sickness or job loss result in an income shortfall, people could find that their ability to keep up with various areas of financial demand – such as credit cards, home loans, mortgage payments and household bills – comes under great strain.
Overall, it was revealed that three-quarters of people lack critical illness cover, with just over half (52 per cent) without a life insurance policy.
Findings from the financial services firm revealed those living in Wales could particularly be placing their capacity for money management at risk, with some 56 per cent of people in the region lacking any form of protective cover. On the other hand, residents in the north-east of England appear to be the most well prepared should the worst happen, as 62 per cent of consumers have at least one insurance policy aimed at safeguarding themselves and their family members in case of a personal disaster.
Alison Tattersall, head of customer and proposition for Barclays Financial Planning, said: “When finances are tight it is often responsibilities like protection policies that fall to a lower priority and of course these policies protect outcomes that people dont want to think about. But people must consider the financial consequences of what would happen if they were unable to work, or their dependents situation if they died, it would be far worse than any concerns they currently have over struggling to meet their outgoings.”
Furthermore, it was suggested that many consumers could also be placing their finances under pressure as 60 per cent of Britons claim to either have no money saved in a bank account, have less than a months salary put away or are unaware how much cash has been put away for a rainy day.
Consumers who are looking to invest in protective insurance policies but feel constrained by their current financial situation may want to consider applying for a cheap loan. By doing so, borrowers could find that they are able to merge various spending commitments into a low-cost monthly repayment, freeing up more money to invest in comprehensive insurance. This may prove to be useful after Fairinvestment some 24 per cent of Britons lack home, travel, payment protection, life or medical insurance, with young people revealed to be particularly likely to lack such forms of cover.
Loan Arrangers providing you with breaking finance news.
Related posts:
