By Tony Stevens, 24th February 2010
The average British household could fall into financial ruin
within two weeks if a family member becomes critically ill or
dies.
Research by leading insurance company, Aviva, reveals that
householders who don't have critical illness and life insurance are
unlikely to maintain bill payments for longer than 14 days if the
worst happens.
According to Aviva, two thirds of British homes do not have
adequate insurance protection.
Without this protection the average home would not be able to
access enough money to offset their household expenditure without
borrowing.
Head of Protection for Aviva, Louise Colley, said: "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."
The research shows that the average home could get their hands
on only £914 of disposable cash, less than two weeks worth of the
average weekly household expenditure of £471 for British
homes.
On the other hand homes with critical illness cover can claim an
average of £78,707 according to Colley.
The average home could get their hands on
only £914 of disposable cash, less than two weeks worth of the
average weekly expenditure.
"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," she
added.
Currently the majority of British householders feel it is their
own responsibility to cover any loss of income if they are unable
to work due to tragic circumstances.
The research shows that many householders would resort to
selling valuable personal belongings to supplement their
income.
One in five people admit they would sell their home and around
one third would sell their car to make ends meet.
A quarter of homeowners would even use their personal
savings.
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