The number of households renting privately in the UK increased by 63% in the decade to 20171, reaching an estimated total of 4.5 million. As the rising cost of living continues to cause difficulties for many, the importance of protection becomes increasingly apparent.
Tenants in the private rental sector generally have lower financial resilience than homeowners; recent research2 revealed that 14% of private renters have no savings at all, compared with 8% of mortgage holders.
Despite this, almost three quarters of renters don’t hold any protection products3. Missing out on the crucial safety net that protection provides is part of the reason more than twice as many renters (29%) as mortgage holders (14%) would expect to apply for state benefits if they were unable to work.
What can I do?
More than two thirds of private renters are worried about losing their income if they could not work due to an illness or injury. Thankfully, there is a remedy for these fears.
Income protection is a financial safety net that provides you with a tax-free income if you are unable to work. If accident or injury are keeping you away from your salary, income protection steps in at the end of your chosen deferred period to help make sure you and your loved ones don’t suffer undue financial hardship.
In the current turbulent economic environment, the value of income protection is clearer than ever. As rising prices diminish savings pots, private renters become more vulnerable to financial shocks and missing rent payments. Having the right protection in place for your unique needs can help provide valuable peace of mind.
1Office for National Statistics, 2022
2FT Adviser, 2022
3Financial Conduct Authority, 2022