More than one in four (27%) families have experienced a loss of income due to ill-health, serious illness or death within the family, according to a study by Aviva.

The experiences of families who have encountered an unexpected loss of income have been published in Aviva's Protecting Our Families report. Their research suggests that such experiences are more common than we may think, with one in ten (11%) experiencing a temporary or short-term loss of income due to ill-health making either parent unable to work for a least 6 months and 7% a permanent loss of income.

Fewer than one in ten (9%) parents questioned said that ill-health had not negatively affected their finances. This compares with 23% of all UK adults who have faced the same circumstances – showing that families’ finances are more vulnerable.

The reality of the unforeseen meant life-changing consequences for some families. One in four (24%) said that were forced to sell their home to either downsize, move back in with family, rent or even become homeless following unexpected ill-health.

One in four parents in families (26%) who have experienced loss of income due to ill-health say they recovered financially within 2 months, rising to 59% who recovered in a year. However, sadly the recovery process took more than a year for almost one in four (22%) families.

Aviva’s findings demonstrate that financial recovery cannot be taken for granted – one in five parents in affected families (20%) do not think they’ll ever recover or have no idea how long it will take.

The report also highlighted the fact that having a plan for dealing with the loss of income and having insurance cover were both factors which noticeably boost families’ chances of recovery financially within a year.

Paul Brencher, Managing Director, Individual Protection, Aviva concluded: "A large number of families are unprotected against a financial shock should they suffer an unexpected loss of income due to ill-health or the death of a parent.

"The reality of facing an unexpected loss of income through ill-health or even the death of a parent can cause real financial hardship for families.

"No one likes to dwell on the possibility of experiencing a period of ill-health or even worse, but how many of us talk about such things within the family? Being prepared and having a plan is critical and also surprisingly affordable."

All our advisors are trained to assess your situation and help you evaluate your protection insurance needs. Your advisor will explain how much, and what types of, insurance makes sense for you and so you can provide financial security for your loved ones.

For further advice give us a call on 0800 612 8005 or you can request that we call you back.

Credit: Aviva. Protecting our families, March 2017.