Renters need financial back-up plan

30% of private renters admitted they would not be financially secure if their household lost its main income

Renters need financial back-up plan

It has been revealed that almost a third of renters do not have a financial back-up plan should their household lose its main source of income.

A poll of tenants by Scottish Widows found 30% of private renters admitted they would not be financially secure if their household lost its main income, but just 16% had life cover in place and only 3% had critical illness protection.

Another 35% conceded that if they or their partner were unable to work for six months or longer due to ill health or personal injury, they’d be unable to live on a single income.

Arranging financial protection was way down the list of renters’ priorities, with 80% viewing a mobile phone as essential, yet only 28% think the same about providing security for their dependants in case they die, and just 21% think that providing security for their family should they become seriously ill is a necessity.

Johnny Timpson, Scottish Widows’ protection specialist, said: “Renters are not prompted by a house purchase to look at how they and their families would manage financially if they were to die or become seriously ill. But while they don’t have a mortgage to pay, they still have financial obligations, not least the monthly rent and regular household bills.

“Many renters assume they can rely on benefits, but welfare reform means that fewer of them would get their rent paid in full if their circumstances changed without warning.

“Having a financial plan in place will help protect their living arrangements in this type of eventuality and give greater peace of mind about avoiding eviction and being able to keep up with their regular outgoings

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