According to LifeSearch and HomeOwners Alliance research, which surveyed around 1,200 homeowners aged 18-34 years old, including 500 mortgage holders, there was a lack of awareness of protection, with only 15% saying that they know a lot about income protection, as an example.
Approximately 14% of mortgage holders aged 18-34 years old would immediately struggle to meet their mortgage payments if they lost their income due to sickness or injury.
Around 57% said they would be in financial difficulty within six months.
When asked how they would cope with a sudden loss of income, 29% said they would try to take on extra work, 23% said they would lower savings or pension contributions, 21% would use government support like Universal Credit and 12% said they would consider a bank loan.
The research warned that these coping mechanisms were “short term” and could “increase financial vulnerability down the line”, especially for a younger generation that faces “stretched budgets and uncertain job prospects”.
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Debbie Kennedy, CEO of LifeSearch, said: “This is a generation full of ambition – but without the guidance and support to match. Many under-35s are navigating some of life’s biggest financial commitments without knowing what protection is available to them, let alone having it in place.
“Income protection isn’t just for older workers or high earners – it’s for anyone who depends on a regular income to cover essential costs. Without it, the impact of a sudden illness or accident could be significantly more concerning.
“There’s an urgent need to close this awareness gap. That means clearer advice, better signposting, and conversations about protection starting earlier – so that young homeowners aren’t left exposed.”
Paula Higgins, CEO of HomeOwners Alliance, added: “Buying a home is a proud moment – but it comes with risks. For young homeowners, the stakes are high: many have stretched to afford their property, and their financial resilience is often still being built.
“We need to do more to support young people in staying financially secure, especially as they take on the long-term responsibility of a mortgage. Ensuring they have the tools, knowledge, and support to weather life’s ups and downs is essential to helping them hold onto their homes and build a stable future.”
Research earlier this week from Swiss Re found that income protection sales rose by 18% year-on-year, but other types of protection like term and critical illness and whole life insurance declined.
