Thursday 9th of July 2009
Individual voluntary arrangement (IVA) advice could be required for the 62 per cent of Britons who recently revealed to Scottish Widows that they have no long-term financial protection in place should their household income be reduced.
The survey found that should an injury, critical illness or serious accident occur to one half of a couple leaving them unable to work for six months, 45 per cent of Britons would rely on their savings.
However, for individuals who have no savings because of unsecured debt such as store cards and personal loans, IVA advice may be needed to discuss the ways they can improve their financial standing to protect from sudden income drops.
"Seeking financial advice and taking out protection to meet your needs can provide a financial cushion when you need it most," stated Richard Jones, protection market director at Scottish Widows.
The British Insurance Brokers’ Association recently urged households not to cut back on other insurance including car and home policies to save money.
Doing so could end up costing people more, further down the line, it added.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
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