The research looks at how homeowners believe they would cope financially if put out of work for a long period of time through illness or injury. 61% of respondents said they would not be able to survive financially if unable to work because of injury or illness. Those aged 34 and under were most concerned, with three quarters admitting that they would not be able to pay all their bills. This compares to 43% of people aged 55 and over.
It shows that homeowners need on average £298.66 per week to survive financially - an amount which will be increasingly difficult to achieve in the current economic climate without a regular income and any form of protection insurance in place.
Worryingly, nearly a third (32%) of people said they would rely on State benefits to survive financially if illness or injury forced them out of work for six months or more. However, when asked what the current level of Employment and Support Allowance is, nine out of ten people (88%) did not know. When asked how much money they would need to ‘survive', 98% admitted that they would need over £100 per week, while Employment and Support Allowance currently offers up to £89.50 a week. These results clearly highlight the misconceptions people have about State benefits and serves to show how, for many, it does not provide adequate income to maintain their standard of living.
Robin Bailey, Nationwide's insurance director, said: "The results are illuminating. It clearly shows that, should the unexpected happen, most people do not have any cover in place. Instead, most people believe they will find a way to survive should injury or illness force them out of work. However, in the current economic climate, we may not be able to rely on such things as the value of our house, or even friends and relatives in the way that we did a year ago. The message is clear: get a secure plan in place and make sure that you have sufficient cover to support your financial needs."
