Half of solo homeowners have no income protection

Solo homeownership is becoming far more common in the UK. According to the Office for National Statistics, the number of people living alone has grown by 10.5% over the past decade. Buying a property solo is now a mainstream choice, especially among younger buyers and women.

At the same time, arranging protection to make mortgage payments in the event of an accident or illness isn’t keeping pace. Research from Zurich Retail Protection shows that 49% of people buying a property on their own have no income protection, even though 68% were offered advice about it during the buying process.

How does income protection work?

Income protection can provide a safety net if illness or injury prevents you from working, helping you keep up with essential expenses. It provides ongoing monthly payments to help replace some of your income.

It won’t replace all your income, but it can go a long way to ensuring you can cover essentials like the mortgage or rent, utilities and food.

Why do so many people take out a mortgage without income protection?

There are a few reasons people skip income protection. For many, it simply comes down to cost. Buying a home can push people’s household budget to the limit, and income protection can feel like one expense too far. Nearly one-in-three (31%) people polled by Zurich cite the cost of protection as the main reason for going without cover.

Others simply don’t see the need. The Zurich research suggests that some think they’re unlikely to face illness or injury (25%), while a small number believe these products are only for older people (6%).

Reliance on family support

Without income protection in place, many solo homeowners end up relying on family as a financial safety net. One-in-ten say they would need to ask their parents for cash if they couldn’t cover bills.

As reported by Protection Reporter, Louise Colley from Zurich UK points out the risk of relying on family as a safety net: “The bank of mum and dad can sometimes quietly fill that gap, but it shouldn’t be a substitute for proper financial protection.”

Confidence vs reality

It’s not just solo homeowners who are exposed. Research from LV= highlights a wider issue: many people feel financially resilient but aren’t prepared for an income disruption.

Over two-thirds of workers say they feel ‘quite’ or ‘very’ financially resilient.

Yet more than 40% have no income protection in place.

One-in-ten have no savings at all, and almost half have less than £10,000.

Many would rely on savings, employer sick pay or a partner if they couldn’t work, but these sources often don’t stretch far. Nearly half of households could only manage three months without income, showing how quickly things could go wrong.

Staying financially secure on your own

Buying a home on your own is a major achievement, but it also brings full financial responsibility. With half of solo homeowners lacking income protection, taking a bit of time to plan ahead could make all the difference between staying on track and facing financial difficulty.