A new survey has found that most people in the UK do not intend to spend less in order to buy protection insurance.
Protection insurance is the last thing on Britons' minds during the current economic downturn, new research has revealed.
Zurich Insurance reported that just a third of the people it surveyed planned to reign in spending in order to buy the cover, either for their mortgage or family protection. Despite widespread reports of redundancies and an expected announcement soon that the UK is officially in recession, people do not appear to be worrying about the possibility of losing their job.
The Confederation of British Industry warned at the end of 2008 that the economy will contract by 1.7 percent in 2009, while unemployment could touch 2.9 million by next year - an increase of nearly two million from the current total.
Zurich UK Life's protection development director Peter Hamilton said: "As household budgets become more stretched, protection may seem less of a priority for some. Yet in the current climate, it's more important than ever that people have some degree of cover in place to protect their immediate needs and safeguard against a potential loss of income."
The issue of cost was cited by Zurich as a reason for people shunning the cover, with nearly half of the respondents mentioning this as an issue. Additionally, many Brits without dependents do not feel that taking out protection is a necessity.
