The average British household would run out of money in less than 14 days if a wage earner fell critically ill or died

New research from Aviva has shown that the average British household may only have enough cash to cover bills for 14 days if they or their partner fell critically ill or died. One in four (24%) of British households say they could only access £100 without further borrowing.

The research shows that without further borrowing, the average British household could get their hands on only £914 of disposable cash.

• One in four Britons could access only £100 of disposable cash within a week if they lost their income due to death or a critical illness
• Nearly two thirds (63%) of British households have no critical illness cover or life insurance
• One in seven (16%) would sell their TV to get their hands on cash if they fell ill

Alternative arrangements

The research shows that, should the worst happen, Britons are drastically under-insured with only 37% of households covered by life insurance or critical illness cover. Should they have to raise alternative income, one in five (19%) Britons would be willing to sell their home, while a third (31%) would give up their car.

However, others say they would sell their TV (14%), the home computer (13%) or even their pet (6%) to raise cash - possibly indicating the extent to which people underestimate the financial impact of a critical illness or death. Perhaps unsurprisingly, men are less likely than women to sell their PlayStations (24% versus 16%).

Responsibility

The majority of Britons (59%) consider it their personal responsibility to cover any loss of income, should the worst happen. This is more strongly pronounced in men, where 67% see it as a personal responsibility, versus 55% of women.

However, 17% of Britons see it as the Government's responsibility to cover any income loss due to a critical illness or death, and 9% would expect an employer to fill the gap. A quarter (24%) of Britons say they would use their savings.

"The majority of British people see it as their responsibility to cover any loss of income in the case of them not being able to work due to a critical illness or death; but most simply don't have enough money to see them through this period. It is worrying how little money Britons would be able to access without further borrowing, and how big the shortfall could be when we consider how much a critical illness or bereavement could actually cost.

"Currently, 31% of households rely on a sole breadwinner. Britons, especially those with dependants, should consider how they would cope should the worst happen.

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