A new tool has launched which allows Britons to find out what their priorities should be when it comes to personal protection and insurance. Whether the person is single or married, has dependants or no dependants, the wheel reveals that the protection of income should always be the top priority.
The online tool, The Wheel of Protection (https://apps.holloway.co.uk/wheel-of-protection/) was created by income protection specialists www.holloway.co.uk and allows customers to see what they should prioritise when it comes to protection, especially in relation to their income, life and illness.
Holloway Friendly created the tool after finding that 89% of employed Britons do not have income protection cover, and two fifths (41%) hadn’t even considered what financial issues they may face if they had to take an extended period of time off work. A further 77% of respondents who were in a relationship confessed that they wouldn’t know what to do if their partner passed away and they were left with financial burdens.
Three quarters (75%) of respondents stated that they wanted to know what their priorities depending on their personal circumstances should be when it came to insurance and cover.
When asked about possible misconceptions they had about income protection, the top five mistaken beliefs were as follows:
1. Income Protection is really expensive/unaffordable for most (42%)
2. It’s unlikely I’ll be sick or injured enough to be off work, so I wouldn’t need income protection (36%)
3. Income Protection is not important (22%)
4. The state will cover my financial commitments if I can’t work, so I won’t have to worry (14%)
5. Self-employed people are not eligible for income protection cover (6%)
Following these findings, the Wheel of Protection revealed the four priorities were as follows:
· Income protection if you cannot work
· Critical illness cover
· Private medical insurance or medical insurance
· Funeral costs/family income benefit/ private medical insurance for lifestyle protection
Users of the Wheel of Protection can also be connected with a financial adviser to seek further guidance on their personal cover and priorities.
Georgia d’Esterre, Head of Marketing at www.holloway.co.uk, said:
“Everyone can benefit from income protection, as nobody knows what is going to happen in the future and how they would cope financially if they couldn’t work for a time. People tend to be really on the ball when it comes to insuring their pets, their homes, their cars and other belongings, but not their own income; and something seems amiss there. Being covered with income protection will not only protect you, but your whole family, if you have one, from being financially burdened.
“The Wheel of Protection is a handy tool that was important for us to launch so that we can educate people on what their priorities should be when it comes to their own personal protection, depending on their circumstances, and although it’s something you’d fully expect an income protection provider to say, covering your income should always be top of the list, followed by critical illness cover. The other two priorities depend entirely on your marital status and dependents, but being armed with this kind of information and guidance will leave you with the knowledge to make an informed and wise decision.”
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