The Income Protection Task Force’s annual Income Protection Awareness Week (23rd – 27th September 2024) aims to raise understanding and educate advisers about the need for income protection.
Traditional financial protection products like income protection, have been one of the leading forms of protection offerings for years. And it continues to play an important role. But as consumer demands and needs change, they should reassess what protection they have, what they need and want to protect, and what products are available.
Research from protection and employee benefits provider, MetLife UK has found that whilst one in five (20%) consumers see the benefit of financial protection, more than one in ten (12%) don’t understand the difference between all various offerings. And with one in ten (9%) admitting they only thought about financial protection once it was too late and they needed to claim, weeks like Income Protection provide the chance for advisers to talk to clients and review what protection they do and don’t have in place.
Rich Horner, Head of Individual Protection at MetLife UK commented: “A combination of people not wanting to think of the worst case scenario, not thinking they need protection and an array of financial protection products on the market, can make it difficult for people to know what and when to take out protection. And when they do, more often than not people opt for more traditional products like life insurance or critical illness cover. Whilst these products continue to play an important role in protecting people, it’s important they assess what they really want to cover to ensure they have the right protection for their situation and needs. Advisers play a vital role in helping their clients; our research found that 9% of consumers held the wrong type of protection until they were advised on an alternative offering. So weeks like Income Protection Week can help prompt those all important conversations and encourage clients to consider all pieces of the protection puzzle.”
Research from MetLife UK finds:
- 15% of consumers are more conscious about protecting their ‘everyday lives’ than ever before, and this rises to 17% who confirm they want to protect their ‘everyday life/living’. This comes as more than half (56%) have sustained an injury from an everyday accident.
- Almost one in three (32%) adults have sustained an injury from simply tripping or falling over. One in five (22%) sustained an injury from a road traffic accident, and another 19% from sporting activities, such as running, football or horse riding.
- And with 15% of adults having sustained an injury twice from an accident, and 20% thrice or more, it highlights the importance of people having a form of cover.
- And whilst three in five (62%) of Brits have some form of financial protection in place, many are holding more traditional products like life insurance, Whole of Life cover, or critical illness cover or similar, and potentially not a financial policy that covers people’s everyday needs.