We live in an increasingly uncertain world. In fact, for more and more people in the UK, economic insecurity has become the ‘new normal’ with at least 70% of the UK’s working population ‘chronically broke’, according to a recent study reported in the Guardian.

The truth it seems is that few of us are prepared for a rainy day or for sudden income shocks.

According to the report, 32% of the UK’s workers have less than £500 savings and 41% have less than £1000. Almost 30% are concerned about their level of debt, while 43% of workers do not have anyone in their household that they could depend on to support them financially in the event of hardship.

A recent study conducted by LV= also found that more than a third of people in the UK don’t think they could handle a personal financial crisis and less than half of people said they have the Money Advice Service (MAS) recommended three months’ worth of outgoings in savings.

LV= has identified millions of individuals and households who are particularly financially vulnerable and who might struggle to cope or bounce back following a financial shock and they’ve shown just how poorly prepared we are as a nation.

Given that economic uncertainty seems to be the new norm, it will surprise few people that at some point in our lives we might face periods of financial difficulty. However, few of us want to talk about illness or death, so planning and preparing ourselves for potential negative life events can be extremely tricky.

Illness and death can have very serious implications for our finances, not to mention the finances of our loved ones, so it is essential to find a way to approach these topics.

Justin Harper, head of marketing at LV= explains: "There’s a double whammy - not only are people generally not interested in facing up to the prospect of an income shock, but as a nation we’re poorly prepared for them too”.

Aviva has reported that the experiences of families who have encountered an unexpected loss of income bring the importance of planning ahead into sharp focus. Aviva’s data suggests such experiences are more common than might be assumed: one in five (22%) families have experienced temporary or short-term loss of income due to ill health rendering either parent unable to work for at least 6 months or more. While 7% have experienced a situation within their family leading to permanent loss of income due to either partner being unable to work ever again.

Altogether, Aviva found that more than one in four (27%) families had been affected by an unexpected situation that impacted their income.

Without having sufficient savings or protection insurance in place, those families that experienced a loss of income were forced to rely on friends and family, the government, credit or debit cards or even loans from payday lenders. More people relied on friends and family than their employers – with only 15% getting any kind of benefit or support from their workplace!

Most worryingly, 19% of people had to sell their home to either downsize or move back in with their family, rent or became homeless.

Talking about protection insurance is essential.

That’s why here at Essential Insurance, we believe that talking about protection insurance is essential. After all, protection insurance can play a vital role in helping people to safeguard themselves and their loved ones against the financial effects of unexpected life shocks.

Income Protection, for example, is an insurance policy designed to provide people with financial security should they find themselves unable to work for a period of time due to an accident or sickness. Essentially it works when you can’t.

There are several different policy options available to suit a variety of budgets. It’s also possible to tailor cover to protect specific debts or select a more specific term for a policy. To help make it easier for you to decide which policy is best for your needs, we can help. If you’d like to find out more, give us a call on 0800 612 8005 and we’ll talk you through your options.

Ultimately, taking out insurance for your most valuable asset is a small price to pay for peace of mind knowing you’ll be financially resilient and be better prepared to bounce back should the worst happen.