But are people really prepared to take the risk they will never have to take time off work because of a serious illness or accident?
Only one-in-ten has income protection and yet statistics tell us a person is three times more likely to go on long-term sick leave than they are to die during their working life. The fact is for the vast majority of people it is the income they earn funds everything in their daily lives – mortgages, rent, bills, holidays, entertainment, savings and pensions.
Here are three ways to demonstrate the value of income protection and how it can provide your clients with a valuable safety net should the worst happen.
1) Most people would drastically have to cut their living costs in order to survive in the event the main breadwinner was diagnosed with a serious illness or suffered a disability.
Income protection will provide a replacement income that means regular bills can still be paid and the family’s lifestyle won’t be compromised.
2) A recent survey showed one-in-ten people will be off sick for more than six months during their working lives. More than half mistakenly think their employer would pay their full salary for three to six months. In fact, an employer only has to pay statutory sick pay of £86.70 a week for up to 28 weeks.
3) Income protection is a great back-up plan because it protects the one thing that pays for everything else in your client’s life: their income. More providers have improved their proposition to cover as many people as possible under an own occupation definition.
This will make it easier for consumers to claim and will ultimately increase consumer confidence in the product.
Protection insurance is all about having a safety net in case the unthinkable happens and with careful planning and professional advice it is possible for clients to protect their finances and their lifestyle no matter what the future holds.
Ian Smart is head of product development and technical support at Bright Grey