Income Protection Action Week: building resilience in uncertain times

In this piece, Mike Farrell, Protection Sales & Marketing Director at LV=, reflects on the steady rise in IP uptake and the growing awareness among both advisers and clients. From the role of Income Protection Awareness Week in uniting the industry, to the increased demand for budget-friendly and executive policies, Farrell outlines the key drivers of momentum in the IP space.

Mike Farrell, Protection Sales & Marketing Director at LV=, said: 

“Income Protection (IP) is an essential part of financial planning, showing consistent growth despite a broadly flat protection market. Advisers who recognise its value are recommending it more frequently, and clients are increasingly receptive, particularly in the wake of Covid, which highlighted the importance of income security.

Income Protection Awareness Week (IPAW), showcases the strength of the protection industry. It brings together experts who share practical insights and guidance, and is a great opportunity for advisers to hand out more.

While the need for IP has always existed, awareness among clients has historically been low. That is changing, as more advisers are including IP in the discussions with clients, uptake has broadened across demographics. Traditionally, occupations with a clear understanding of income risk, such as healthcare professionals, continue to lead adoption – a trend that we are still seeing today. Executive Income Protection is also gaining traction, with more advisers recognising its value. There is also growing understanding that some level of cover is better than none. Short-term, budget-style IP policies remain popular, offering a cost-effective way to bridge income gaps during illness.

The cost of living crisis has reinforced the importance of financial resilience. Advisers play a critical role in helping clients understand the impact of income loss. IP delivers value in times of need. Tools like the LV= Risk Reality Calculator are invaluable for starting personalised, protection-focused conversations.

We hear that a key barrier to IP adoption is adviser confidence. Those who understand the product’s flexibility become its strongest advocates. For those less familiar, support is available.

At LV=, our specialist account managers are ready to help advisers build confidence, position IP effectively, and address client questions.”