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Britons fail to guard against loss of income

Optimism about the future is falling but there is little sign that

the public is doing anything to guard against any potential loss of

income that could affect their standard of living.

Research for Scottish Provident reveals that the number of Britons

who expect their standard of living to improve over the next 10 years

has dropped to 52 per cent from 57 per cent in 2001.

Yet only 42 per cent say they or their family are making sure their

standard of living will be maintained if they are ill. Only 22 per

cent say they have a large amount of savings to fall back on if

things go wrong.

ScotProv says the desire to have it all is obvious, with 75 per cent

owning mobile phones,68 per cent a car and 62 per cent their own home.

The study shows that 77 per cent of respondents have insured their

home contents and 64 per cent their home but only 44 per cent have

life insurance, 19 per cent critical-illness insurance, 13 per cent

income protection and 7 per cent unemployment cover.

Scottish Provident believes that one reason for the low levels of

life protection is the move away from endowment mortgages to

repayment mortgages.

Head of marketing and product development Nick Kirwan says: “It came

through loud and clear that while people want a high standard of

living throughout their lives, they are not facing up to the

financial responsibilities that come with ensuring it happens.

“Advisers have an important role to play in educating consumers about

the different types of protection products on offer and to ensure

that they are adequately protected against illness and long-term

absence from work.”

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