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More than half of renters have no financial protection

More than half of renters have no financial protection
Emma Lunn
Written By:
Posted:
19/08/2024
Updated:
19/08/2024

A study by Scottish Widows has shown that 56% of private renters have no form of financial protection in place.

The research surveyed more than 4,000 UK adults and found that the average period that people have taken off due to serious illness or injury is almost five months.

But the life insurance company found that just 9% of people could afford to financially support themselves for a month if they were not able to work for an extended period.

The research also found that almost a third (32%) of tenants have never thought about financial protection before, with 20% believing they have no reason to have protection in place.

Protection insurance is typically taken out when buying a property, but Scottish Widows warned that with the average age of a first-time buyer rising, people are opting to rent for longer.

Among the 44% of renters across the UK who do have protection insurance in place, a fifth said they took it out because they have children, while 15% were prompted to take out insurance because someone close to them had benefitted from it.

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Figures from the Financial Conduct Authority (FCA) showed a third of renters have seen rent payments increase in recent years, impacting tenants’ financial security.

Rose St Louis, Scottish Widows’ protection director, said: “Millions of renters are financially vulnerable, and this shouldn’t be ignored. Rising rents are taking up a higher proportion of people’s income, the cost-of-living squeeze hasn’t gone away and, for many, financial pressures aren’t easing.

“Buying an insurance policy against serious illness or loss of income isn’t just for those who have children or have opted to buy a home and take out a mortgage. It’s for everyone to help ensure financial security, meet outgoings, and keep a roof over their heads at any stage of life.”