Who Pays the Rent if You Can’t Work?
Published by Sophie Fillmore on 2020 01 30
Research from Sainsbury’s Bank recently revealed that only a quarter of renters (26%) are likely to have life insurance or critical illness over, compared to almost half of homeowners. That’s quite a disparity. Some of the reasons renters don’t think they need insurance include that they believe they don’t have enough equity/assets to warrant life insurance, or that they do not have children/dependants that would suffer should they be unable to work for any length of time.
When it comes down to the crux of the matter, that doesn’t really make a lot of sense, though, does it? Whether or not you have children, becoming unable to work for a week, a month or even a year can have a catastrophic effect on anyone’s financial position, regardless of whether you are paying a mortgage or rent to a landlord.
Let’s take a look at some statistics about the proportion of people who privately rent, rather than own, their homes. The English Housing Survey, 2018/2019 reveals that 4.6 million households (19% of all households in England) are in the private rented sector. This figure has doubled in size since 2002. The survey also found that in 2019, 37% of private renters had dependant children
The findings of Knight Frank in their 2019 Tenant Survey take this information a step further - they anticipate there will be an additional 560,000 households in the private rented sector by 2023. This will make up 22% of all households.
With all of these facts, figures and forecasts in mind, renters should be considering all of their insurance/assurance needs just the same as homeowners, so that if they ever do find themselves in the position of be unable to work for any length of time, they can rest assured that their families and needs will be taken care of. For as little as £20 a month*, you could get £1,000 a month paid to you in the event that you are unable to work.
Speak to one of our Financial Advisers to get up to date with Protection, whether it be Income Protection, Life Cover or a Rental Protection Plan.
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*Based on 40 year old non-smoker earning £45,ooo per annum. Payments commence after 26 weeks. This is an illustration only. Your circumstances may change the premium you pay or income replacement you receive.Back