'For richer, for poorer, in sickness and in health’

Over 14 million workers could be exposed to financial ruin in the event of an accident, illness or unemployment in the New Year, according to research from Alliance & Leicester Protection.

With council tax and utility bills going through the roof, research from Alliance & Leicester Protection has found that over half (51%) of British workers would not be able to manage financially if they were unable to work in the event of an accident, illness or unemployment, equating to 14,137,200 people.

Furthermore, of those who would be unable to manage, nearly half (46%) say they would need up to £1,000 each month to supplement their current savings and a further 23% would require up to as much as £1,500 each month, just to stay afloat whilst off work.
Of those who said that they would be able to manage (39%), almost a fifth (19%) would either have to spend their hard-earned savings, or rely on their partners’ income in order to get by (8% and 11% respectively).

A shocking one in five (21%) have no insurance and hardly any savings at all to fall back on.

Lindsey Henson, Manager for Protection at Alliance & Leicester comments: “It’s easy when you’re busy with your working life to take the security of a monthly income for granted. However, if you become ill, suffer an accident or are made redundant then you may be unable to earn an income. It is vitally important to consider what measures you can put in place to ensure you can continue to meet your financial commitments and maintain a reasonable standard of living.”

Henson continues: “Savings may help you get by for a while, but if you are unable to work for a long period of time, your hard-earned savings can simply disappear. With the average mortgage payment now at £592.781 a month and the average annual council tax bill coming in at £1,0562, people would need at the very least, £5,000 put away in savings to last for just six months out of work.

“I would recommend everyone who relies on their monthly income to arrange a review with a Financial Advisor. A review can help you to establish the type and level of income protection you may need based on your individual circumstances. Making it your New Year’s Resolution to have the right sort of cover in place will give you valuable peace of mind and help get 2007 off to a more secure start.”