By Johnny Timpson from Scottish Widows
The Covid-19 pandemic has shown how the unexpected can happen and highlighted the need for financial resilience for UK households. We’ve seen unprecedented government support made available, along with nearly 2 million households applying for a mortgage payment break*.
I’ve been talking about welfare safety-net reform for a number of years now, but why do I think this continues to be so important for our industry? We know that a significant number of people and mortgaged households in the UK are under-protected with, as highlighted by the Money And Pension Service’s recently launched Financial Capability Strategy, many lacking the savings in place to cope with the impact of serious illness or death. It’s also the case that many clients don’t know, or over-estimate, what state benefits they would be entitled to, so it’s clear that educating your clients on these reforms, and their financial health and lifestyle impacts, can be used to reinforce their need for a ‘Plan B’, in the form of appropriate financial protection.
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