Figures revealed in a recent report by Aviva show that unexpected loss of income is sadly much more common than people might think - with 27% of people surveyed experiencing a loss of income due to ill health, serious illness or death, 11% experiencing long-term loss of income and 7% permanent loss of income.

But do you think that these hard-hitting statistics will highlight the need to place ‘planning ahead’ further up our list of priorities?

Key findings in the report suggest that we are a nation of people who like to live for the moment, with 76% of parents having no plan for dealing with lost income due to ill health and 68% having no plan for dealing with the death of themselves or their partner.

The parents surveyed who had found themselves in an unfortunate position with no plan in place had to resort to; seeking government support (35%), cutting back luxury spending on the family/children (34%), selling personal possessions (18%) or asking the family to help (17%). One in five (19%) had to downsize, move back in with family, rent or became homeless as a severe consequence. While 11% took on debt from a mainstream lender and 6% borrowed from an alternative lender.

Sadly, 20% of people don’t think they’ll ever recover or have no idea how long it will take.

So why are we so averse to planning ahead?

Having a plan for dealing with a loss of income and having insurance cover were both linked to faster financial recoveries – noticeably boosting families’ chances of recovering financially within a year. Yet according to another report published earlier this year by Royal London merely a quarter of UK adults surveyed have a life insurance policy (26%), just 6% have critical illness cover and only 4% have income protection.

The main reason why so few people take out protection insurance, Royal London says, is cost. Their conclusion is backed by a YouGov Life and Health Protection Report, which states affordability is the key reason why more people do not take up life insurance, with 34% of people saying that they cannot afford to invest in it.

How much do you need to invest to protect your loved ones?

The fact is, insurance to protect the future of your loved ones from the financial hardship that can be experienced due to ill health, serious illness or death could cost a lot less than you think.

So often our price perceptions are wrong and it’s worrying that so many of us are deciding whether to take out this type of insurance based on what may be inaccurate information. For example, if you don’t smoke, a 40-year-old can get level term life insurance for £150,000 over a 20-year term for under £140 per year or to be exact £11.60 a month through Essential Insurance (prices correct on the 29.06.2017).

To put this £11.60 a month outlay into perspective if you are buying a coffee every weekday you’re spending around £2.50 a day – which means you could be spending around £50 a month on coffee - which is more than four times the investment of a life insurance policy for some people.

A minor adjustment to what we spend our money on today could help us make a plan to ensure that our families don't have to make very large financial adjustments in the future if the worst should happen.

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