Tenants, why protecting your income could avoid rent arrears

January 7th 2021
By: Embrace

Results from a recent national survey (*) have highlighted that literally hundreds of thousands of tenants in England and Wales could now be in rent arrears as a result of the current Covid-19 crisis.

That’s why Embrace Financial Services (EFS) is now recommending that tenants consider taking action to help prevent a similar fate, should illness be the cause. 

The survey, which was conducted by the National Residential Landlords Association, found that, on average, arrears amounted to between £251 and £500 although, of those in arrears, 18% have rental debt of more than £1,000. And, with the advent of another national lockdown, there’s growing concern that the situation could worsen in the months to come as the health and well-being of tenants becomes of increasing concern.

It’s for that reason that EFS recommend that tenants consider insurance that protects their income in the event of being unable to work as a result of sickness, stress or injury, to counteract the financial impact the crisis could bring as Paul Nurding, Managing Director for Embrace Financial Services, explains:  

“We are aware that the crisis has impacted many people financially, perhaps because they have lost their job or have been placed on furlough, but also because their health has led them to being unable to work.

For tenants who don’t receive sickness pay from their employer, or who may be self-employed, this could be devastating because they risk losing their income, in some cases, for many months.

If you have income protection insurance, however, you’ll receive a monthly benefit for an agreed time should you be unable to work because of sickness, stress or accidental injury which could help you to make rental payments and pay the bills while you recover. And, even if you are currently on furlough or are have received Coronavirus Self-Employment Income Support, you may still be able to get income protection.

Overall the easiest route is to do nothing but no-one knows what the future will bring and how the crisis and virus may develop and affect us personally. Until that time having some protection to assure you that, if you do fall ill, your bills and rent could be paid should provide much needed reassurance and certainty. It’s well worth considering especially now.”  

Embrace Financial Services has Financial Advisers who can offer advice and support in applying for income protection and answer any questions you may have and, if the appointment relates only to protection products, and subsequently leads to a products being arranged through Embrace Financial Services, there will be no fee payable.

Why not book an appointment today?  

(*) National Residential Landlords Association survey conducted by the research consultancy Dynata between 17 November and 9 December 2020.