UK: Over half of Brits would struggle financially within three months if illness struck

in a nationwide survey of 1,000 British adult employees and 500 employers, carried out between october 18 to 21, 2011, for Aviva by market researchers OnePoll, the opinion poll showed that:

a. over half of UK workers (52%) would be unable to survive financially for more than three months if they were off work with an illness. Around a third (30%) say they’d survive for less than a month. Less than one in ten (9%) say they’d remain solvent for a year or more.

b. if finances were tight, some people would neglect their health in favour of non-essentials. Nearly a quarter (23%) would put their health at risk - with 14% saying they’d miss important health checks and one in ten (9%) admitting they’d put up with health ailments. One in ten (12%) say they’d cut down on cigarettes or alcohol.

c. nearly half (49%) say they’d eat cheaper supermarket offers and fast foods, while one in five would cut down on family holidays. A similar proportion (19%) say they’d use less heating/electricity.

d. nearly seven in ten (65%) workers cite financial concerns as the main reason to get back to work quickly if they are off sick. Regaining a sense of purpose (28%), getting well (21%) and providing for their families (16%) are also high priorities.

e. a significant number of people (44%) fear that going back to work could cause a relapse of their condition and a quarter (24%) worry that they won’t be able to work to full capacity.

on the findings, Steve Bridger, head of group risk, Aviva, UK Health says:

“It’s understandable that over eighty per cent of people think long-term sickness is something that happens to other people. However in reality you never know what’s around the corner and few people have the savings available to support themselves and their families for very long. Employment and Support Allowance can come to as little as £67.50 a week – even less than Statutory Sick Pay - which in many cases would hardly cover a family’s food shopping, let alone their mortgage and other necessary expenses."

my comments:

i wouldn't really be surprised if the results of the opinion poll will probably show similar findings if it were conducted here in our tiny red dot nation.

the latest statistics up to end september 2011 from the life insurance association of singapore (http://www.lia.org.sg) showed that total claims paid out amounted to $3.69 billion to policyholders and beneficiaries.

of these, only $342 million or just over 7% was paid in respect of claims for death, critical illness and disability whilst the remaining or close to 93% going to policies that matured.

this statistic on claims has been pretty consistent across many quarters for many years underlining the fact that our population may be grossly underinsured.

which is why i mentioned that if a similar poll is conducted here, the findings will probably be almost similar to the latest poll conducted by Aviva in Britain.

and herein is the irony, that if insurance is compulsory for all vehicles (except bicycles) plying our roads and expressways, doesn't it make real sense and urgency that every single human life be similarly insured. but alas, this is where the path diverges because personal life insurance remains an option and a choice to be exercised.