The #LiveLifeProtectIt campaign has launched to encourage consumers to save for a rainy day or take out protection insurance.
The campaign is being supported by the ABI and Money Advice Service, 65% of consumers are exposed to unplanned financial shocks, research conducted for The Money Advice Service found.
The research also found that 32% of UK adults have experienced a serious financial shock in the past five years, while only a third had the right insurance in place to cushion the financial blow.
Protection insurance such as income protection was considered a necessity by 17% of the 2,000 people surveyed by Opinium for the Money Advice Service.
An incident happening to a friend or family would be a ‘wake up' call to considering protection insurance for 12%, having children would be a wakeup call for 16% of those surveyed.
Andy Webb, money expert at the Money Advice Service, said: "The research highlighted that there is a big gap between the number of people who experience financial shocks, and those that protect their lifestyles by either saving for a rainy day or considering the relevant protection insurance.
"As the research suggested, many of us find it difficult to comprehend the thought of illness and death and as a consequence we may be tempted to put safeguarding our finances to the back of our minds.
"We never know what is just around the corner but it is important for consumers have all the information they need to plan ahead for how they would cope financially should the worst happen.
"Creating a rainy day fund is a good first step to safeguard both yourself and your family.
"We would also urge people to consider whether insurance might be an option within their planning and budgeting."
Dean Lamble, managing director at SunLife, said: "The most common trigger for taking out life cover is buying a house which means most people are treating it like a type of mortgage protection.
"However, the average life insurance pay-out in the UK doesn't cover the average outstanding mortgage -it is £30k short.
"This means even those with life cover in place have a worrying large ‘protection gap' leaving them financially vulnerable.
"Particularly worrying when you consider than 1 in 10 say their families would lose most or all of their income in they were to become critically ill or die."
Further reading:
Seven Families announces seventh family
Protection Review 2015: ABI develops workplace sick pay statement
ABI's head of protection moves to MAS
