Nearly half (24 million) of people in the UK have no insurance in place to cover loss of income through illness or the death of a breadwinner.
According to research from Friends Provident, even those who have considered taking some action would be underinsured by an average of £14,500 per year. Additionally, of those with policies, 53% have no idea how much they would receive if they were to claim. The under-insurance is partly blamed on unreasonable assessment of needs. A third think they could live on less than 35% of take home pay if unable to work through illness or injury. Based on an average weekly salary of £489, that would be an income of £171 per week, compared with the average weekly household expenditure of...
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