Four in five full-time workers without income protection (IP) insurance are renting or have a mortgage, an IP study from mutual society Shepherds Friendly has found.
IP covers salaried income if a worker has an illness or injury that rules them out of work.
The ‘Reaching the unprotected report 2026’ survey of over 2,000 UK adults found nearly a third (32%) of full-time workers without IP are renters, while almost half (49%) have a mortgage or loan secured against their home.
The findings come despite concerns around income security being high among participants. Four in 10 respondents (38%) said it was likely their income could be impacted by factors outside of their control within the next five years, compared to 21% answering it was unlikely.
Although the main perceived threat is inflation and rising living costs (68%), followed by an economic downturn (60%) illness or long-term health conditions was the third biggest concern at 51% – above job loss or redundancy (50%) and AI automation replacing job roles (48%). Concerns about illness and injury increased to 58% for 18 to 24-year-olds.
This highlights the potential value of IP to younger workers, particularly for those who rent. According to the ONS, 25 to 34-year-olds account for the largest single share of private renters in the UK.
The low IP take-up among renters and mortgage holders is particularly revealing considering more than one in five (20%) full-time workers aged between 18 and 64 have already experienced a period where they were out of work and didn’t receive their usual earnings – rising to 40% for those aged between 18 and 24.
The report found only 16% of UK adults working full time have an income protection policy, with take-up lagging other insurance products such as life and health insurance – solidifying its role as one of the most overlooked insurance products.
Dan Simpson, Chief Commercial Officer at Shepherds Friendly, said:
“Rent and mortgage payments don't stop when someone's income does. Yet our research shows that many workers with these significant financial commitments have no income protection policy in place should illness or injury prevent them from working.
“There continues to be misconceptions around what IP is, what it covers, and misplaced concerns that they may not be eligible.
“Workers are increasingly aware that their financial circumstances can change beyond their control in future, yet relatively few have taken steps to protect their ability to earn an income if that happens. It continues to be our and the industry’s job to ensure people are aware of the options open to them as part of their financial resilience planning.”
