Income Protection Awareness Week has begun with fresh data showing that only a small minority of Britons have cover in place to safeguard their income in the event of illness or injury.

Research by mutual society Shepherds Friendly has revealed that just 14% of adults currently hold an income protection policy, leaving more than 80% financially exposed should they be unable to work.

The figures highlight a pronounced gender divide, with only 11% of women holding income protection compared with 17% of men. Almost a third of respondents said they regretted not having taken out cover.

CALL FOR GREATER AWARENESS

Max Jarrold, chief growth officer at Shepherds Friendly, said too many households were underestimating the value of income protection.

“Despite most of us relying on our income to pay for essential living expenses, it’s surprising to see how many people in the UK haven’t taken out income protection,” he said.

Jarrold stressed that while people often insure their pets or mobile phones, they overlook their income – the very resource that funds such expenses.

He noted that in today’s climate, shorter-term financial priorities such as bills or holidays often take precedence over preparing for longer-term risks.

Shepherds Friendly’s findings suggest many households remain ill-prepared for the financial consequences of long-term sickness or accident.

Jarrold added that income protection is particularly important for homeowners and those with dependants. He advised anyone uncertain about what cover is appropriate to seek guidance from a financial adviser.

The awareness week aims to improve understanding of income protection and encourage more people to consider the role it can play in safeguarding their financial security.