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Critical illness cover essential in a world without savings

Date: Mon, 05 Dec 2005

Critical illness cover has a stronger role to play as the UK continues to reduce its savings.

A new report from Bradford & Bingley shows that there is little sign of the UK's £27 billion savings gap being closed. Around 36 per cent of 30 to 50-year-olds and 40 per cent of over-50s are saving regularly and many are not saving enough to help them fund a potential drop in income.

Just 15 per cent of the UK's savers are putting aside more than £300 a month and, in many cases, the saving is for short-term goals rather than to help in times of illness or unemployment.

"What has also become clear though in our research, is that large numbers are still failing to save regularly – many citing the lack of cash as the reason they aren’t doing so," said Steve Potter, head of savings at Bradford & Bingley.

He added: "This disparity between what they should be saving and what they are managing to put away will undoubtedly mean many people will be facing the future with apprehension and even dread."

Consumers without adequate savings are being urged to consider critical illness cover to help protect their current lifestyle in the event of poor health.


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