Research from Aviva shows, almost a third (31%) of UK adults have experienced temporary or permanent leave from work due to ill health, a cancer diagnosis or even a death of a long-term partner.

Sadly, more than three quarters (77%) of these have seen their finances suffer, equivalent to 12.3 million people.

Aviva’s report shows the reality of the financial fall-out caused by unexpected illness, with a particularly damaging effect on families with young children. The research shows more than a quarter (27%) of parents with dependent children have suffered a health crisis, with nearly all (91%) of these saying their finances were negatively affected.

UK adults who have experienced unexpected health events or a death in the family have had to resort to a number of measures to get by. Almost two in five (38%) had to apply for benefits or other support from the Government, while over one in five (22%) had to dip into their savings. In addition, 13% cited that they stopped saving for their retirement. One in six (16%) also had to sell their personal possessions.

Worryingly, 15% had to either downsize, move back in with family, start renting or even became homeless – demonstrating the life changing impact an unexpected loss of income due to ill health can cause.

One in ten don’t think they will ever recover financially from a health crisis

Of those UK adults who have experienced loss of income due to ill-health, serious illness or a death in the family, more than half (56%) recovered within a year. However, one in five (18%) say this took longer than a year while 13% still haven’t recovered, and don’t know how long it will take.

More than one in ten (12%) or 1.9 million people who have experienced a health crisis don’t think they will ever recover from it financially.

Paul Brencher, Aviva UK Health and Protection Director, said: “Millions of people have seen their finances damaged by poor health: without any plans in place, a loss of income caused by ill-health can have a long-lasting effect on people’s finances. This can be particularly difficult for those with a family to support, who often have a range of financial obligations – such as mortgage payments and bills – and also the added concern of how they will provide for their children.

“Illness can strike at any moment, and not having a plan in place for this could be a dangerous risk to take. Our research shows that many people who have experienced a health crisis have resorted to a number of unpleasant measures, like using nearly half of their savings, selling their personal possessions or even their home.”

A small sacrifice now could make all the difference in the future. Taking out relevant insurance could help protect your family and ensure unexpected events are easier to financially manage. If you’d like to talk to an expert about getting the right type of cover in place to protect your family, we’re here to help. At Essential Insurance, we’ll take time to understand your needs and circumstances so we can give you advice and make a recommendation – for a no obligation chat, you can give us a call on 0800 612 8005.

Credit: Aviva. Protecting our families, March 2017.