While in 2019, 63% of families could cope with a loss of a family member’s ability to work, this year only half of families would be able to cope with such a situation, and only 20% of the population has life insurance that protects against incapacity for work.
According to Tuuli Pärenson, CEO of EKsL, economic vulnerability has clearly increased. “An unexpected loss of income – whether caused by illness, accident or incapacity for work – affects families’ livelihoods more than ever before. This trend confirms that the role of life insurance in ensuring families’ long-term sense of security is increasing”, Pärenson said. "Even more worrying are the results of the study, which show that families' ability to cope with a loss of one month's salary has decreased. While in 2019, 80% of people were able to cope with at least one month without a regular salary, this year this figure has dropped to 73%", Pärenson added.
The study found that 29% of the population has no savings at all, and a third has savings of up to three months' income. A fifth has savings of four to 12 months' salary, and only 9% have saved more than their annual salary.
The study was conducted by EKsL and Turu-uuringute AS in May of this year. 1,010 people aged 18 and older participated in the online survey, the Association said.
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