Generation Rent has no financial safety net
Only 16% of private renters in the UK have life cover in place, and just 3% have critical illness insurance, according to Scottish Widows.
Yet a third admit they would not be financially secure if their household lost its main income.
The financial firm said that millions of people in the UK who rent their homes from private landlords are putting themselves and their families at risk of eviction and financial hardship due to lack of a financial back-up plan.
Renters at risk
More than half (56%) of private renters have children under the age of 16 who rely on them financially.
And over a third (35%) admit 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.
Yet when reviewing their finances, 35% pay little or no attention to insuring their rent.
Johnny Timpson, Scottish Widows’ protection specialist, says: “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.
“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.”