It seems that we in the UK are not as prepared as we could be in the event of a crisis. According to research, as many as 1.9 million people who have experienced an unexpected illness or death don’t expect to recover financially.
Moreover, a quarter of us only have enough set aside to pay our mortgage payments for a maximum of three months. Despite this, a surprising amount of UK households still don’t have the right protection in place. Inadequate insurance protection (or underinsurance) could leave your family ill-equipped to deal with unexpected events, such as the death of the principal breadwinner or a prolonged period without work.
Things such as funeral costs and loss-of-earnings due to bereavement can also have an impact that, if not planned for, can be difficult to recover from but we’re still under-prioritising this aspect of our financial planning.