Renters - Do You Have A Financial Backup Plan?

If you rent from a private landlord, you would be wise to make sure you have a financial backup plan that protects you and your family in the event of financial hardship or eviction. However, new research has revealed that just 16 per cent of renters here in the UK currently have life cover and just three per cent have critical illness insurance.

The Scottish Widows study has found that 56 per cent have children under the age of 16 but only 28 per cent believe it is essential to provide security for their dependents. And, perhaps alarmingly, 30 per cent admit that they wouldn't be financially secure if the main income of the household was lost.

Protection specialist with the organisation Johnny Timpson said: "While they don't have a mortgage to pay, they still have financial obligations, not least the monthly rent and regular household bills. Many renters assume they can rely on benefits, but welfare reform means that fewer of them would get their rent paid in full if their circumstances changed without warning."

He went on to remind people that arranging financial protection will help to safeguard their current standard of living and also give them peace of mind about avoiding eviction and also keeping up with regular outgoings.

You can buy your critical illness cover when you sort out your life insurance policy, which makes it a lot easier. This will then pay out if you're diagnosed with a critical illness and you'll still have your life cover in place. You can also just buy a standalone critical illness policy, which will pay out a sum if you get a disease or illness listed in the policy.

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