Fewer than 2 in 5 full-time workers (16%) have income protection cover in place, according to a new report.
Four in five (81%) of those without cover are renting or have a mortgage and approaching half (44%) have children under 17 to support.
The figures are based on a survey of 2,000 UK workers by mutual Shepherds Friendly.
The lack of coverage was not due to a lack in knowledge. Two thirds (70%) of those surveyed had heard of income protection as a product, with awareness increasing with age.
When asked what would get those currently without cover talking to a financial adviser, 28% said a free consultation would be most enticing followed by the knowledge there were no broker fees (22%), clear, jargon-free advice (12%) and online reviews and testimonials (12%).
Nearly one in five (19%) said nothing would persuade them.
Despite the lack of cover, one in five (20%) of those surveyed had experienced a period where they were out of work and did not receive their usual earnings, including 40% of those between 18 and 24.
Inflation and the rising cost of living was the main concern for all age groups (68%) when it came to factors that could threaten their income over the next five years. Fear of an economic downturn was the second-highest factor (60%), above illness and a long-term health condition (51%).
The potential impact of AI on job security was also a concern for 48% of respondents.
Dan Simpson, chief commercial officer at Shepherds Friendly, said: “The findings from this year's research suggest that low Income Protection take-up is not primarily driven by a lack of awareness. Instead, misconceptions about what the product does, concerns about eligibility and uncertainty about its value appear to be preventing many consumers from engaging with protection conversations.
“For advisers, this creates a significant opportunity: education, reassurance and clearer communication could help more clients recognise the value of protecting their income.
“Price remains the dominant purchasing factor, but health and wellbeing benefits are also popular. There is therefore an opportunity for advisers to demonstrate both the protection and wider support available through modern policies to help improve engagement.”
• Walnut surveyed 2,000 UK adults online on behalf of Shepherds Friendly in October.