Of those who have a back-up plan, 63% said they would use their savings to replace their income. A third said they would turn to bricks and mortar to either downsize or sell a second home to release funds. Relying on a partner or spouse’s income was the default position for 19%, the same figure said they would rely on inheritance to see them through. Only 15% of those with a back-up plan had income protection to fall back on.

Dougy Grant (pictured), protection director at Aegon, said: “When making long term plans it is important not to overlook the obvious and be caught off guard financially. Unexpected events such as illness or unemployment have the potential to derail the families’ finances, so it’s vital to have a backup plan. Without one families can be one step away from financial breaking point.

“When it comes to protecting your families it’s sensible to have a financial safety net. That way money becomes less of a worry in the event of a financial emergency and you can turn your attention to the things that really matter.

“You need to be realistic and consider if you suffered a crisis like a serious illness or job loss would you be financially prepared to handle it? Reliance on savings is not necessarily the right answer and they may be too small if things were really bad.”