The struggling UK economy might be forcing many of us to tighten our belts, but it seems some Brits are taking it a step further.
Research has revealed that three out of ten UK adults are uninsured against situations such as death, critical illness or redundancy.
More than 15 million people would be financially at risk if they were to lose their income, but research by financial advice website Unbiased has found that many are not covering themselves for this eventuality.
It was found that 15% don’t see income protection as a necessity, while another 15% said that they simply can’t afford it.
“Consumers looking to tighten their purse strings are now adding insurance policies to the ‘cancellation list', choosing to let go of their financial security in favour of some extra cash in their pockets,” said Karen Barrett, CEO of Unbiased.
“The ‘it won't happen to me' attitude seems to be at the forefront of people's minds as they fail to realise what this may cost them in the future,” she added.
The research found that almost one in ten people have cut back on a number of insurance policies in order to save money, but experts have called this a false economy.
“If you are worried that the cost of insurance is too much of a burden on your finances then speak to an IFA to decide where you are most at risk,” added Ms Barrett.
“An IFA will be able to recommend protection products to match your individual needs as well as seek out policies which are more likely to suit your pocket.”
Reassuringly, the research found that life insurance still ranks highly amongst what people feel is important for them and their family, with 45% of respondents saying it was the most important insurance policy for their family’s long-term financial security.
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