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Many people would not be able to survive if they put out of work, it has been claimed, although a loan may provide a cash injection to tide households over should such a scenario occur.

According to LV=, individuals need to check their financial security regularly to ensure that they have the correct income protection.

"The research showed that on average, people could manage [without an income] for two months or less. It just goes to show that people might come under a lot of financial pressure quite quickly," a spokesperson for the firm says.

Furthermore, individuals do not realise the position that they would be in should they find themselves out of work, she adds.

In addition, a survey by LV= discovered that 30 per cent of adults state that they could not survive for more than two months on what they have saved if they were put out of full-time work.

But if a household suddenly found themselves with a drop in income, secured loans could provide a cashflow and may have a lower annual percentage repayment rate than other loans.