According to research from LV=, which surveyed around 4,000 people, only 15 per cent of working adults have an income protection policy and 12 per cent had income protection provided by their employer.
A quarter of the mortgage holders have income protection versus one in 10 renters surveyed.
Some 19 per cent of UK workers would struggle to pay they mortgage or rent if they couldn’t work for two months due to illness or injury.
The research also revealed that 60 per cent of 25 to 44-year-olds without income protection would feel more secure if they had a policy that paid if they could not work due to illness or injury.
Over a quarter, 26 per cent, of working adults have less than £1,000 in savings or no savings at all, 19 per cent said they would rely on partner’s income to cover bills if they could not work.
Less than half, 49 per cent, said they would be able to survive for more than four months without an income.
Mike Farrell, protection sales director at LV=, said: “As the impact of the cost of living crisis deepens, people are becoming aware of their financial resilience and the value that income protection insurance brings. With energy bills and mortgage and rent payments rising, increasing numbers of people are worried about how they would pay their bills if an accident or illness prevented them working.
“Income protection remains a flexible way to maintain a financial safety net if someone is unable to rely on cash savings. Budget income protection plans with 12 and 24 month options provide an income for specified periods while giving more flexibility to customers.”
He added: “For those facing financial hardship and unable to cover premiums, in certain circumstances LV= payment breaks can offer relief without sacrificing their cover.”
