24m 'face financial meltdown' through lack of insurance
By myfinances.co.uk staff
Some 24 million adults are running the risk of "financial meltdown" because they have no insurance in place to support them if they lose their income through illness or the death of a breadwinner, a new study has claimed.
The Protection Oversight report by 72 Point for Friends Provident found that around a third of people believe they could survive on less than 35 per cent of their take home pay if sickness or injury meant they were unable to work.
Based on an average weekly income of £489, that would leave £171 to live on - £300 below the typical household expenditure of £471 a week.
Ed Stuart-Brown of Friends Provident said: "Imagine being told that you had just been given a 66% cut in your income - the impact of that for most people would be catastrophic."
Among those who do have some form of insurance in place, 53% admitted they have no idea of how much money they would receive if they made a claim.
According to the Association of British Insurance, the UK's insurance market is the biggest in Europe and the third largest in the world.
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