Scottish Equitable Protect is urging independent financial advisers (IFAs) to ensure their clients have income protection (IP) after borrowing hit a record high in December last year.
The insurer said IFAs with clients who have accrued huge debts over the Christmas period should ensure they are covered against illness and inability to meet their debt repayments if they become ill and unable to work.
The warning comes after figures from the Bank of England show that in December consumers borrowed £6.8bn more than at any time since 1993.
In December the Credit Card Research Group predicted UK shoppers would spend almost £9.2bn on their credit cards over Christmas.
The insurer said IFAs play a vital role in alerting clients of the need to take out cover and of the products available.
IP pays out a pre-agreed proportion of an employee’s salary if he or she is unable to work because of long-term illness or injury.
Head of marketing Heather Armstrong said: “If you’re ill and absent from work, the last thing you need is extra worry regarding household bills.
“Having an IP policy would eliminate this risk.”