Generation Rent exposed

Private renters are leaving themselves exposed with a lack of financial security and backup plan, Scottish Widows research shows.

While almost a third (30%) admit they wouldn’t be financially secure if their household lost its main income just 16% have life cover in place and 3% have critical illness insurance.

What is more 56% have children under the age of 16 who rely on them financially.

Johnny Timpson, Scottish Widows’ protection specialist, said: “Renters are not prompted by a house purchase to look at how they and their families would manage financially if they were to die or become seriously ill. But while they don’t have a mortgage to pay, they still have financial obligations, not least the monthly rent and regular household bills.

“Many renters assume they can rely on benefits, but welfare reform means that fewer of them would get their rent paid in full if their circumstances changed without warning.

“Having a financial plan in place will help protect their living arrangements in this type of eventuality and give greater peace of mind about avoiding eviction and being able to keep up with their regular outgoings.”

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Written by: Houseladder