According to a recent survey of 3,000 UK consumers carried out in March, only 4% of respondents would sacrifice their income/individual protection, while 5% said they would give up their life insurance or private health insurance commitments if forced to make cutbacks.
In comparison, 40% of respondents said they would give up everyday perks such as eating our or buying coffees, while 37% are prepared to forgo “luxury items” such as household goods or furnishings and just over one quarter (28%) would give up entertainment subscriptions like Netflix.
At the other end of the scale, alongside protection policies, people were least likely to give up private school fees (4%), travel tickets (6%) and phone contracts (6%), illustrating where consumer spending priorities currently lie.
The research also revealed that more than eight million UK adults have already begun down cutting and canceling subscriptions and other luxuries to save money.
Some 57% of respondents stated that despite not having to make difficult choices and cut back on their spending yet, they accepted the need to do so in the future.
Rich Horner, head of individual protection at MetLife UK, explained that highest inflation in 30 years, rising energy prices, fuel bills and food costs are all stopping money from going further each month.
“It’s positive to see that consumers remain committed to holding life insurance and income protection policies as this can reap much greater rewards with minimal upfront costs,” he said.
“Whilst not a tangible product, income protection gives you the peace of mind that should the worst happen your income is protected. Income protection is also crucial for workers, particularly those who are self-employed, who may need to take time off work due to an accident or illness.”
“While paying monthly for these products may feel like a stretch at the time, policyholders can be comfortable in the knowledge that they have a back-up plan in place for when they need it most.”