Emerging findings reveal a precarious situation for UK renters in the event of illness.
- Nearly a third of UK renters admit to struggling with rent if unable to work due to illness.
- Only 14% can maintain rent payments for more than three months when unable to work.
- Most would need to borrow money from family or use savings to manage financially.
- Few renters know about or use insurance policies to relieve financial pressure during illness.
The latest research indicates a troubling scenario for UK renters, revealing that almost 29% would find it difficult to cover next month’s rent should illness prevent them from working. This statistic underscores a significant vulnerability within the renting population, highlighting a crucial area of concern.
Alarmingly, only 14% of renters believe they could sustain rent payments for more than three months if they were unable to work due to illness. This suggests that a large portion of renters are not financially prepared to handle prolonged health issues that impact their ability to earn.
The survey, encompassing 1,000 UK renters, exposed a stark reality: more than a quarter of them say their finances could withstand a long-term sick leave. Furthermore, just under 22% feel they could manage financially if diagnosed with a severe illness, and only 14% could cope with a loved one falling seriously ill.
When faced with a financial shock due to illness, many renters would turn to their personal networks for support, with 36% likely to borrow from family members. Additionally, 35% would resort to their savings, while 33% might use their ‘rainy day’ or emergency funds. Interestingly, 18% would consider liquidating investments, showing a reliance on drastic measures to meet financial ends.
More concerningly, 6% of renters would opt for short-term loans from finance providers instead of invoking the potentially stabilizing effects of an insurance policy— only 4% indicated they would rely on this option. Ed Axon from LifeSearch highlights the importance of awareness around insurance policies as a means to enhance renters’ financial security.
Ed Axon remarks on the glaring knowledge gap concerning insurance solutions that can provide renters with peace of mind and financial stability. His commentary underscores the imperative need for educational initiatives targeted towards renters, coupled with innovative product offerings tailored to their preferences and accessible through their preferred channels.
The financial precarity faced by UK renters highlights the urgent necessity for enhanced awareness and education around financial protection options during illness.
