'Squeezed middle' falling into financial protection gap

People in their 30s and 40s are falling into the 'protection gap', new research from HL suggests. Getting the right cover, though, is achievable.

NOT ENOUGH FINANCIAL PROTECTION

Only 30% of people aged 30 to 34 and 34% of those aged 35 to 39 have enough life cover to protect their family, the figures show. People in these age ranges are often referred to as the ‘squeezed middle,’ due to the combination of paying for a mortgage, children, and other dependants.

PROTECTING YOUR FAMILY

Although the fact they face many other pressures can help explain why people in the ‘squeezed middle’ may be neglecting financial protection policies, these same factors also make the need for robust safety nets especially important. Alarmingly, the survey found that just 26% of couples with children have adequate cover.

Likewise, only 36% of households with a mortgage have enough cover. The research also noted that, in many cases, it is not the mortgage itself that is not adequately insured; instead, many households seem to pay for life insurance to cover mortgage costs but then stop short of considering support for their children.

DON'T RISK A SHORTFALL

When it comes to protection, it’s certainly true that it’s better to be safe than sorry. The ‘squeezed middle’ face many pressures and often end up making sacrifices, but having the peace of mind and financial security that financial protection policies offers should not be one of them. We can source suitable cover for your circumstances.

More information about the services we offer is available here. Why not schedule a free consultation with an independent financial adviser to find out if you're adequately covered?

Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.