According to a recent survey
, the average renting household only has £137 remaining at the end of the month, compared to £337 for mortgaged households. If you suffered a loss of income through an inability to work, how would that affect your ability to meet your financial obligations like rent, utilities, and food?
Money talk isn't always the first thing on everyone's to-do list, but it should be. We're looking to break the stigma around talking about finances and personal affordability. When it comes to protecting your livelihood and your ability to keep up with financial commitments, we won't shy away from a conversation.
Is protecting your income just for homeowners?
Traditionally yes, however, a recent survey has shown that tenant households have an average income of £20,294 whereas mortgage households earn £56,188 on average. Rent payments take up a higher amount of this income, meaning tenants are more likely to struggle in the event of a loss of income caused by an inability to work through illness or injury.
Has anyone ever spoken to you about protecting your finances?
Whether you regularly find yourself using your overdraft, or you have almost finished saving to buy a house, the financial implications of being unable to work can be extreme. Did you know that it’s possible to take out an insurance policy that will pay out a percentage of your income until retirement?
In a world where 36% of working-age people are reported to have at least 1 long-term health issue, the chances that it might be you have never been higher.
Do you have enough savings to secure your future?
The average time the average person can maintain their standard of living for is just 19 days once their income stops. In contrast, the average person thinks they can last 60 days. How long do you think you could last?
If you’re in any doubt as to whether an illness/injury would cause you significant financial difficulty, get in touch with our team today to find out how you can protect your future.
2.6 million adults in the UK are out of work due to long-term sickness. If that happened to you yesterday, could you cope?
The amount of adults who are unable to work is rising. Traditionally, people have only been encouraged to protect their income as part of the house-buying process, as this includes the maintenance of debt (a.k.a mortgage) in order to remain in the property.
At Ultralets, we believe that, although there is no debt associated with a rental property, the requirement to maintain payments in order to keep the roof over your head is the same. Therefore, if you are unable to work, you still have to pay your bills. Our free-advice service is here in order to provide you with the same advice normally afforded to homeowners. Get in touch today.
Plan to rely on state benefits in case you get ill or injured?
Did you know that Statutory Sick Pay is currently only £109.40 per week? Coupled with the fact 60% of adults in the UK have less than £5,000 in savings, the cost of getting ill can be severe. How long could you last if you lost your ability to work?
If you feel uncertain about any of these points, or you'd just like to talk to a professional, get in touch with our in-house Advisor, Jack, today. Let's work together to find out how we can assess your vulnerability and provide you with a safety net to keep a roof over your head. All our advice is free.