Over 33% would turn to savings if unable to work due to illness

We asked our followers across LinkedIn and Facebook how they would afford the essentials if they could not work due to illness or injury and it’s safe to say, we were shocked by the results!

Planning on using savings?

With just over a third of the vote, the option ‘use your savings’, was the top choice amongst those who voted in the poll.* Resorting to savings to pay for the essentials in life may seem like an obvious choice at first but realistically this would be unattainable for a lot of us. According to data from Finder, 1 in 10 Brits have no savings at all and for those who do have savings, they reported that the average person in the UK has just £6,756.81 in savings.

At first glance this might seem like a generous amount of savings that could see you through a tough time. But with the cost of living reaching a 40-year high in April 2022, many of us are having to cut back on spending and savings feel more important than ever. Do you think you would be able to get by using just your savings for an extended period of time?

Critical illness cover

Having a critical illness policy in place can help financially protect you against long term illness. This type of policy will pay-out a lump sum if you were to be diagnosed with a critical illness, defined in your policy conditions.

Additionally, by combining a critical illness policy with a life insurance policy, you will be protected against both death and critical illness. At Caspian, we typically recommend choosing this option as you will be protected against both events, with the policy ending once a valid claim has been made or the policy expiring.

At Caspian, our protection specialists are equipped with years of industry knowledge and are able to advise the best policy for you, based on your circumstances. No one knows what’s around the corner, so start your free quote today by clicking the button below!

Asking your loved ones

Almost 20% of those we asked said they would turn to their loved ones for financial help if they found themselves unable to work due to illness or injury.* However, with an income protection policy in place, you would not have to burden your loved ones with financially supporting you if you were suffering with long term illness.

Income protection is a type of long term life insurance which can act as a replacement for a percentage of your gross monthly income if you could not work due to illness or injury. According to Aviva’s 2021 claims data, the average duration of an income protection claim was seven years and five months. Could you ask your loved ones to financially support you for this length of time?

Income protection

Looking at the most recent claims data from Legal and General (2021), the average pay out from an income protection policy was £1,067.00 per month. This is a staggering amount of money to receive from your policy each month, and could help you pay for the essentials and get by without having to ask your loved ones for help. Depending on how much you earn and your health and your lifestyle, you could receive a similar amount to this each month, if you were to make a valid claim on your income protection policy.

Last year, Legal and General reported that the top 3 claims on an income protection policy were for;

• Musculoskeletal related illnesses
• Cancer
• Covid-19

At Caspian, we have created an income protection calculator. Our handy calculator is not only free but gives you the chance to see how much you could be paying for an income protection policy in just 30 seconds! Click below to be one step closer to having this type of cover in place.