However young and fit we are, there’s no guarantee we’ll stay in peak health in the near future. Financial protection can take the worry away if you were to become ill and be unable to work.

Interest rates are rising, and the cost of living is still expensive. We’re all paying more for essential items. On top of this, can you imagine how stressful life would be if you were ill and unable to work? How long would your savings cover your bills?

A UK Savings Statistic Report published on the Money website in February 2023 revealed that 34% of adults had either no savings or less than £1000 in a savings account. Almost two-thirds said they wouldn’t be able to last three months without borrowing money.

These figures, collated by the Financial Conduct Authority, clearly show that some people would be financially vulnerable if they were unable to earn money.

A report published by Legal & General last year showed that UK consumers overestimate their ability to survive on no income. On average, consumers thought they could survive for 60 days if they suddenly lost their income, but a calculation based on actual savings and spending showed that the true figure is likely to be 19 days. In short, the average UK consumer is just 19 days from the breadline. This is down from 24 days in 2020.

Younger people have less money saved

The Financial Conduct Authority statistics also revealed that younger people were less likely to have savings. FCA research revealed that 47% of 18-24-year-olds had less than £1000 in their savings account. This is understandable when you consider that younger people have had less time to save, but it does mean you could be financially exposed if something were to happen to you.

If you’re relatively young, you might not have a mortgage yet and may think you don’t need to worry. But if you pay rent, you could still be at risk of financial difficulty if you couldn’t work.

None of us knows what’s around the corner. Sadly, we’re receiving an increasing number of claims for serious illnesses from younger clients.

We were recently contacted by Tania, one of our regular clients. She told us: ‘I remember when I took out my first mortgage with NatWest how I regretted not taking out mortgage protection, then two years later, I got diagnosed with MS. I remember saying to my brother, Danny, “Please don’t make the same mistake”. 

‘Danny is only 36 years old, and his malignant brain tumour and stroke have left him blind and mentally impaired,’ added Tania. ‘This has left us all distraught. His life expectancy has been significantly reduced, but the insurance package he took with MB Associates is enabling us to care for him the best way we can without the added pressure of worrying about paying bills and the mortgage.’

Financial protection is not just for older people

Another client, Tom Boud, developed cancer in his thirties, despite previously being fit and healthy. Tom almost didn’t take out financial protection as he thought he wouldn’t need it due to his age and health.

Fortunately, he changed his mind and took out critical illness cover. He told us that receiving a lump sum payment meant he could focus on recovering rather than worrying about money. He has since made a good recovery.

Unfortunately, ill health can strike any one of us. We don’t like to think about being ill or passing away, but wouldn’t it be reassuring to know your family would be protected if something were to happen to you?

Some people avoid taking out financial protection because they think it’s too expensive. But it doesn’t have to be costly.

We offer a range of financial protection solutions to suit all budgets. Options include critical illness cover, which pays out a lump sum on diagnosis of a serious illness and income protection, which pays out a monthly sum if you fall ill and can’t work. We also offer life cover, which pays out a lump sum to your loved ones if you were to pass away.

Contact us today for more information on financial protection and how it can offer you peace of mind.

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