One in three of us would take out pet insurance for our furry friends, yet more than eight out of ten don’t have or wouldn’t buy financial protection for ourselves in case we’re unable to work.
Only 17% of workers in the UK either have or would take out income protection cover, according to research from income protection provider Cirencester Friendly, compared to 33% who have or would take out pet cover in case their pet needs medical treatment.
Income protection is designed to replace lost income if you’re unable to work due to illness or injury. The policy will pay out either until you’re able to go back to work, the policy ends, or you retire or die. Find out more about how this type of cover works in our guide to income protection.
“Insuring your income in case illness or injury prevents you from working is still too low on the agenda,” said David Macgregor, commercial director at Cirencester Friendly. “Double the amount of people would choose to insure their pets rather than themselves, sadly highlighting a questionable choice of priorities.
“Falling ill or being too injured to work can be stressful at the best of times and that is without considering the financial implications, which can result in people trying to return to work even if they are not really fit enough to do so - potentially creating even more distress.”
Cover needn’t break the bank
The good news is that income protection often isn’t as expensive as people think it’s going to be. For example, according to Cirencester Friendly, it would cost £22.36 for a 24-year old to take out income protection, based on cover of £1,000 per month benefit, payable after one week of illness or injury. Insuring a pet may cost more than this, with the average pet insurance bill costing £25.47 per month.
The cost of income protection premiums will, however, depend on several factors, such as your age, occupation, lifestyle and how much cover you need.
There are several other types of financial protection available which may also be worth considering. These include critical illness cover, a type of insurance which pays out a lump sum upon diagnosis of a specified illness, such as cancer, heart attack or multiple sclerosis, and life insurance, which will pay out a tax-free cash lump sum if you die during the policy term.
You can find out more about how different types of protection work in our life insurance guides.
Brits twice as likely to insure pets than themselves