Cashflow 'dries up within a fortnight of death or illness'

Death or critical illness would leave the average British householder cash-less within two weeks, suggests new research from Aviva.

The insurer's survey of 1,000 people found that, if they lost their income due to death or critical illness, the average respondent could access £914 of disposable cash, less than two weeks of the average weekly household expenditure of £471.

One in four respondents could access only £100 within a week.  

Nearly two-thirds had no critical illness cover or life insurance in place yet most (59%) said they considered it their personal responsibility to cover any loss of income should the worst happen. Just 17% described it as the government's responsibility to provide cover and 9% would expect an employer to fill the gap.

A quarter (24%) of respondents said they would use their savings to cover costs.  

Louise Colley, head of protection for Aviva, said: "The majority of British people see it as their responsibility to cover any loss of income in the case of them not being able to work due to a critical illness or death; but most simply don't have enough money to see them through this period. It is worrying how little money Britons would be able to access without further borrowing, and how big the shortfall could be when we consider how much a critical illness or bereavement could actually cost.

"Currently, 31% of households rely on a sole breadwinner. Britons, especially those with dependants, should consider how they would cope should the worst happen. With the average Aviva critical illness payout currently standing at £78,707, and premiums for life and critical illness cover costing roughly the same as a Friday night takeaway for two, it's vital that people have cover in place, just in case."

 If you would like afree quotation please call on 0845053 3404 or contact us .

Back to all Health Insurance Articles