Having a family can be an expensive business, so it’s no wonder that paying for income protection insurance can slip to the bottom of the priority list. However, it seems that more parents pay to insure their mobile phones and their pets than themselves, which could put pressure on family resources should the breadwinner be unable to work.
According to research by insurance brand There, only 16% of parents surveyed confirmed that they had income protection insurance; however, this number was dwarfed by the 21% who had protection for their mobile phone and the 23% who had pet insurance. Surprisingly, parents with younger children (aged five and under) were particularly devoted to their phones, with nearly a quarter protecting them with insurance compared with just 19% who protected their income.
This is a worrying finding, particularly as 27% of parents questioned said that they wouldn’t be able to pay their rent or mortgage after just two weeks if the major breadwinner no longer had an income.
“Young families can find it tough to prioritise finances when they’re juggling the realities of everyday life with small children,” commented Clive Allison of There. “But not having income protection in place at a time in your life when savings are low, perhaps after moving house to accommodate new babies and so on, can leave the whole family vulnerable.”
However, it’s not just parents with young children who are likely to prioritise other things above income protection. Indeed, parents of older children were found to be even less likely to have this insurance, with 13% of parents with children aged 14 to 16 years old being more likely to insure their jewellery than their income.
Perceived expense is definitely a barrier to many parents, but it is not the only one. A lack of awareness is another issue, as nearly one quarter of young parents admitted that they had never even considered getting income protection. Other parents in the survey claimed that it was too complicated.
“We know that insurance drops down the priority list because it is perceived to be more expensive than it actually is, can be full of jargon or too complicated. [But] having the proper protection in place to help ensure that the family won’t be put under financial strain should an illness or injury mean they’re unable to do their job for a number of months, can really help to give peace of mind,” explained Clive Allison.
If you want to give your family some security should the worst happen, by protecting your income should you be unable to work, you can give your family valuable peace of mind.