| Only a small proportion of working adults have income protection despite recognising its financial benefits | Many households rely on two incomes, increasing vulnerability if one partner cannot work | Low savings and high household debt heighten the importance of protecting earned income |
Recent research1 has highlighted a significant gap in financial protection among UK workers. A report shows that only around a quarter of working adults currently have an income protection policy in place.
The research shows that just 27% of the working population have cover designed to protect their income if they are unable to work due to illness or injury. Despite this low level of cover, the benefits are clearly recognised. Around half of those surveyed said they would feel more financially secure if they had suitable income protection in place.
Who faces the greatest financial risk?
The findings suggest that couples may be particularly exposed. Around 45% rely on both partners’ incomes to meet their regular monthly outgoings. This reliance is even more pronounced among younger age groups, with 70% of working couples aged 18–24 depending on two salaries to cover everyday living costs.
Low savings add to the pressure
On average, working adults have three people who depend on them financially, yet many have little in reserve if their income were to stop. A third of respondents reported having savings of less than £5,000, almost a quarter had under £1,000 and one in ten had no savings at all. This is especially concerning given that average household debt stood at £20,640 in 2023–24.
Income protection can play a vital role in providing stability during unexpected periods off work. If you’d like help finding cover that suits your circumstances, we’re here to support you.
1LV, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
