• Nearly half of UK adults have no protection policies

• Southerners less protection savvy than the north

• 81 per cent have no idea what they would receive in government benefits

• Half of people in the UK believe they will struggle with outgoings

Despite the level of fear surrounding unemployment and debts1 in the current environment, research2 out today from Barclays Financial Planning shows a worrying trend of people not providing themselves and their families with a safety net.

Over half of people3 are worried about being able to maintain their outgoings within the next 12 months, pushing essential safety nets like income protection and critical illness cover to the bottom of their priorities. Results show, nearly half (47 per cent) of UK adults have no protection policies4 in place whatsoever, to protect them and their families in the event of losing their income, health issues or even death.

The safety net gap:

1. 52 per cent have no life insurance
2. 75 per cent have no critical illness cover
3. 78 per cent have no income protection cover

Those aged between 35 to 54 often have the most responsibilities in terms of dependants and outgoings, but showed a large gap in their protection cover, with 45 per cent having no life cover and 74 per cent with no income protection insurance.

Alison Tattersall, Head of Customer and Proposition at Barclays Financial Planning said: “When finances are tight it is often responsibilities like protection policies that fall to a lower priority, and of course these policies protect outcomes that people don’t want to think about. But people must consider the financial consequences of what would happen if they were unable to work, or their dependents' situation if they died, it would be far worse than any concerns they currently have over struggling to meet their outgoings.

“Our research indicates that a large number of people are without any protection at all, or that they don’t realise they have any policies in force. Both are equally as worrying, especially given the current climate.”

When looking at what other safety nets people could be relying on, the research reveals that 60 per cent of people admit to having nothing saved, having less than one month’s salary in the bank, or not knowing what they have in savings at all. Worryingly the report also reveals that nearly 40 per cent of people don’t receive benefits such as sick pay, death in service or health insurance, or simply do not know if they would be entitled to them. Coupled with 81 per cent of people not knowing what they would receive in benefits from the state if they were too ill to work, it shows that many people haven’t thought through their plan b.

Alison Tattersall continues: “This is a worrying trend. People need to know what their state and employee benefits are before they are able to plan their protection needs properly.

“Over half of people that do have protection policies said they did not take advice or did not know if they had taken advice when buying their cover, and over 70 per cent do not know or only have a rough idea what level of payout their policies would give them if a claim was made. This could clearly mean people end up without the right cover for their needs, which is often just as bad as having no protection at all. We urge people to seek professional advice and review the level of protection insurance they have to cover themselves or their family.”

Regional Breakdown

All UK regions showed a high level of protection lethargy, the South proved it was less protection savvy than the North, but those in Wales have the least protection overall.*

1. 56 per cent of people in Wales have no protection insurance
2. The North East is the best protected region with 62 per cent having protection cover in place
3. The South East has 48 per cent of people without protection cover, with London at 53 per cent with no protection.

* See the Barclays Financial Planning protection gap map for further regional comparisons click here.

To contact Barclays Financial Planning go to any branch of Barclays Bank, call 0800 587 2024 or go to www.barclays.co.uk/financialplanning.

For further information contact:

Lansons Communications
Linda Tyson / Sirina Parr
0207 566 9713 / 0207 294 3636
lindat@lansons.com / sirinap@lansons.com

Notes to Editors:

1 - 43 per cent stated they are most worried about their debts or the risk of unemployment.
2 & 3 - Opinium Research carried out an online poll of 2001 British adults between 24th and 28th October 2008 on behalf of Barclays Financial Planning.
4 - Protection policies meaning: life insurance, critical illness cover or income protection.

About Barclays Financial Planning

Barclays Financial Planning (BFP) provides tailored financial advice on life, pensions and investment products across a carefully selected range of products from a range of product providers according to customer needs. It is one of the largest financial advisers in the UK, with over 700 advisers. A no obligation financial planning consultation is available to personal, business and corporate clients, and our advisers have a range of solutions available for businesses wishing to discuss succession planning. To discuss your financial planning needs make an appointment with a Barclays Financial Planning adviser by calling 0800 587 2024 or visit www.barclays.co.uk/financialplanning for more information.

www.barclays.co.uk/financialplanning