ONLY ONE person in five has financial cover in place to protect themselves in case they fall ill, while most people would rely on savings, investments and a healthy partner as a financial cushion if they couldn’t work, according to Bank of Ireland Life.

More than a third of people who don’t have any financial protection in place have no idea how they would cope financially if they were to become seriously ill, research published by the life company shows.

One-third said they would rely on a healthy partner working two jobs to support them, while 27 per cent would sell their home or downsize in order to cope. The vast majority said they would cash in existing savings and investments.

However, in light of rising unemployment, stagnation in the property market and falling investment values, these options may not provide a sufficient financial safety net should one breadwinner become ill or die, Bank of Ireland Life says.

“Recent events have made protection plans more important for people as their assets may have fallen in value,” says Brian Grimes, head of the company’s protection business.

Couples can secure basic life cover and specified illness cover for as little as €1.76 a day.

However, although providing for the financial future of one’s family should be a priority, consumers must bear in mind that the conditions covered under critical illness policies are very tightly defined. If an insured person falls ill, they will only be covered if their condition matches the exact definition in their policy. For example, a policy may cover heart attacks, but it might not cover related conditions such as angina.

Most critical illness policies also will not cover many of the most common illnesses which prevent people from working, such as stress-related illnesses, back injuries and diabetes.