Despite having average monthly outgoings in excess of £1,400 (excluding mortgage payments), almost one in two (46%) of Britons have no protection in place to cover their financial commitments in the event of death or ill health, according to a new survey.

As part of its quarterly study, Alliance & Leicester’s Wealth Tracker Index asked a GB representative sample of 2,000 people the extent to which they are committed to a range of monthly outgoings, and whether they currently have life cover or protection insurance in place.

Key findings:

• Almost nine in ten (88%) Britons are committed to paying household bills every month – and one in three (35%) of those have bills of £250 or more. However, just 4 per cent of those committed to paying household bills have any cover in place to ensure they can always pay them.
• Two thirds of Britons (66%) are committed to monthly credit card payments of an average £258 per month, yet three in four of them (75%) have no life cover or protection in place to protect their payments.
• Seven per cent of Britons are committed to paying school/university fees - 32 per cent of those have bills of more than £250 per month. Just four per cent of those who are committed to paying for their child’s education have any sort of financial protection.
• Almost one in five (19%) Britons are committed to average monthly car loan repayments of £210, yet just 24 per cent of them have life cover or protection to pay off the loan if they were unable to work.

Regional findings:

• Despite having average monthly household bills over £250, as many as 98 per cent of those living in Scotland have no cover should the worst happen.
• Almost seven in ten (69%) people living in the South of England are committed to monthly credit card payments, with an average payment of £265 each month. Just 27 per cent have cover in place to ensure they can continue to pay their bill if they lost their income.
• More than a fifth (21%) of Britons who live in the North are committed to car loans, and although they have average monthly repayments of £258 per month, 74 per cent have made no provision should they be unable to cover this cost.

Sarah Ennion, Product Manager at Alliance & Leicester commented: "No-one knows what the future holds so it pays to be prepared. Whilst people are aware of the need to cover their mortgage payments, the majority of people forget about protecting their other financial commitments."

"For example – if the main income earner in a family died or was unable to work due to illness, the household bills would continue to come in, the car loan would still need to be paid and so would the children’s school fees."

"Life and health insurance can be used to ensure that individuals and their families can maintain their standard of living if the unexpected were to happen. I would encourage people to seek advice from a Financial Advisor who will be able to advise them on the most suitable products and the level of cover required based on their circumstances."