Seven million people in the UK are taking a huge financial risk by leaving themselves and their possessions completely uninsured. According to new research from Scottish Provident (2), 15% of adults admit that they don’t have any insurance at all. And, while house and car insurance are the most popular policies to have, a worryingly high 22% of us have no home contents insurance and three out of ten drivers claim to have no car insurance.

Scottish Provident’s research reveals that people take an even more risky approach when it comes to protecting themselves and their families. Half of people have no life insurance and only one in five have protection in case they cannot work because of a critical illness. The figures are all the more worrying given that half of UK adults say they could not afford to maintain their current lifestyle beyond one or two months if their work circumstances were to change.

Sue Wilkinson, Head of Life and Health Propositions, Scottish Provident said: “It’s no great surprise to find that people are more likely to protect their belongings than their ability to meet the household bills if things change, but it is still worrying. Our research found, for example, that people are twice as likely to insure their mobile phone than their income, yet there are no bets for guessing which of the two is most vital to them.

“With so many different types of insurance policies on the market, people can easily get confused and this is probably why they avoid the issue altogether. But, people do need to think very carefully about what they would do if they were made redundant or had a long-term illness”.

To help people get the right protection, Scottish Provident has provided the following tips:

- Review what you have already. This includes any cover your employer provides and existing policies. You should also consider your level of savings, bearing in mind how quickly they will diminish if you have to use them to cover your living costs.
- Think about your commitments, such as your mortgage and children, and work out what you’d like to insure and for how much. If you cannot afford all of it, prioritise according to what you can afford and what you most need.
- Review your cover regularly and especially if your circumstances change, for example, if you get married or if the main breadwinner changes.
- Policies can differ enormously, in terms of what they cover, how flexible they are and the value of payouts. Make sure you understand what you are buying and that you feel comfortable with the level of cover it provides. If you are not sure, ask.
- Don't stick your head in the sand. Hoping that it'll never happen to you is not a good reason for not buying protection. Think carefully about how prepared you want to be in case the unforeseen happens and plan accordingly.

Scottish Provident’s research also reveals some interesting insights into the realities of life people most dread. More than nine million UK adults(2) would buy relationship insurance that would pay out for choosing the wrong partner or spouse. Women are more likely to opt for this than men, with more than a fifth saying they’d welcome financial protection for their love lives.

More than a quarter of people (28%) would buy insurance if they could, to compensate them for getting old. Whilst women (one in five) would be twice as likely as men (one in ten) to buy insurance that pays out if they pile on the pounds.