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The average British household would run out of money in less than two weeks if a wage earner fell critically ill or died – how long would you be able to keep up your mortgage without the income you currently enjoy?

New research from Aviva has shown that the average British household may only have enough cash to cover bills for 14 days if they or their partner fell critically ill or died. One in four British households say they could only access £100 without further borrowing.

The research shows that without further borrowing, the average British household could get their hands on only £914 of disposable cash, less than two weeks of the average weekly household expenditure of £471 – Aviva says this is just a tiny percentage of an insurance payout that a well-covered person or their family is likely to receive should they fall ill or die.

By taking out critical illness cover or life insurance you can be safe in the knowledge that you will be able to keep up with all your bills, but most importantly your mortgage – it is the biggest bill most people have to pay each month and it is the most crucial if you want your family to have a roof over their heads.

The Aviva research shows that, should the worst happen, Britons are drastically under-insured with only 37% of households covered by life insurance or critical illness cover.

But at the same time the majority of Britons consider it their personal responsibility to cover any loss of income, should the worst happen. So these conflicting number simply don't not make sense – the best way to cover your liabilities is to take out some sensible insurance cover. A mortgage broker can help – as well as offering home loans they are also qualified to offer advice on a range of protection products.

Louise Colley, head of protection for Aviva, says: "When it comes to critical illness or death, money worries are the last thing a family would need at such a distressing time, so we would encourage everyone to take the time to consider life and critical illness cover to make sure they have adequate protection in place."

SOURCE: Aviva, 24/02/10

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