3rd March 2016
Millions of British women remain financially unprotected, leaving them highly vulernable should anything happen to them, claims new research.
According to insurer Scottish Widows, just a third, at 33%, of women currently have a life assurance policy while just 8% have critical illness cover and 4% have income protection.
As a result, their families are exposed to potential hardship should the unthinkable happen without this type of safety net in place.
The insurer highlighted that this is all the more important when you consider that almost 17% of women now claim to be the main breadwinner in their relationship, rising to a 25% among 25-34 year olds.
Outside of employment, the analysis revealed that 68% of women with children under 18 are still primarily responsible for providing childcare.
Johnny Timpson, protection specialist at Scottish Widows, said: “The financial role for women in the family has evolved significantly in recent decades, yet very few get round to arranging robust protection that adequately supports their family and safeguards their future.
“But there are many more leaving their families at risk too, and just because someone doesn’t earn a salary doesn’t mean their contribution in the home shouldn’t be protected as it could be very costly to replace.”
While 48% of people believe their household would be able to cope with the loss of an income due to their or their partner’s death, only 39% consider providing financial security for their family in the event of death as essential, which has dropped from more than half, at 53% in four years.
In addition, just 18% of the population thinks that protecting their or their partner’s income is essential.
Timpson added: “No one likes to think about the unexpected happening to them, and it’s very clear that this tendency to ignore the worst case scenario is preventing families from protecting their livelihoods.
“The last thing people want to worry about, under difficult circumstances, is how they’re going to make ends meet. The value of protection, however, is to provide long-term peace of mind about having financial security in place.”