{"id":3065,"date":"2021-11-24T10:49:15","date_gmt":"2021-11-24T10:49:15","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=3065"},"modified":"2021-11-25T09:27:29","modified_gmt":"2021-11-25T09:27:29","slug":"fca-highlights-need-for-adequate-protection-cover","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/11\/24\/fca-highlights-need-for-adequate-protection-cover\/","title":{"rendered":"FCA highlights need for adequate protection cover"},"content":{"rendered":"<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Back in February, the Financial Conduct Authority (FCA) released its latest Financial Lives Survey. Firstly, and unsurprisingly, it revealed the severe strain the COVID-19 pandemic had put on the nation\u2019s finances. Secondly, around a quarter of UK adults were showing signs of poor financial resilience, including over-indebtedness, low savings and low or irregular earnings. <\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The survey was\ncarried out in two stages, with the first analysing the period between August\n2019 and February 2020, and the second examining the financial impact of\nCOVID-19 between March and October 2020. Even before the pandemic struck, there\nwere points of concern among some of the more positive findings, including a\ngeneral lack of protection insurance cover. <\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>The\nprotection gap <\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Positively, the\nnumber of people holding an insurance product of any kind increased to 88% in\n2020, from 81% in 2017. However, with 53% of respondents holding no protection\nproducts at all (albeit less than the 57% that said the same in 2017), the FCA\nhighlighted what it called <em>\u2018a significant protection gap\u2019.<\/em><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The gap was\nparticularly pronounced among young adults aged between 18- 24, as well as\nvulnerable consumers and those who lack confidence in managing their finances.\nConcerningly, many people who fit these criteria have families who, were they\nto die or become too ill to work, would suffer significant financial hardship.\nYounger generations and those in vulnerable groups may have many pressures on\ntheir finances, but it is important to take out adequate protection cover if\npossible \u2013 perhaps with familial help and encouragement, depending on the\ncircumstances.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong><em>The value\nof investments and income from them may go down. You may not get back the\noriginal amount invested. A pension is a long-term investment. The fund value\nmay fluctuate and can go down. Your eventual income may depend on the size of\nthe fund at retirement, future interest rates and tax legislation.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Back in February, the Financial Conduct Authority (FCA) released its latest Financial Lives Survey. Firstly, and unsurprisingly, it revealed the severe strain the COVID-19 pandemic had put on the nation\u2019s finances. Secondly, around a quarter of UK adults were showing signs of poor financial resilience, including over-indebtedness, low savings and low or irregular earnings. The [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":3066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,89],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3065"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=3065"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3065\/revisions"}],"predecessor-version":[{"id":3083,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3065\/revisions\/3083"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/3066"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=3065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=3065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=3065"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=3065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}