As Income Protection Action Week continues, the conversation around financial resilience is more relevant than ever. Amid rising costs, economic uncertainty, and increased awareness of financial vulnerability, income protection is moving steadily up the priority list, not just for clients, but for advisers too.
To explore how protection conversations are evolving, we asked a range of experienced advisers and financial experts to share their views on why income protection is more important now than ever before, the trends that are driving interest, what challenges they’re facing, and what practical actions they recommend during IPAW and moving forward.
Gemma Sawyer, Protection Adviser for Switch FS:
Why is income protection more important now than ever before?
I think income protection is more important now because our income is having to stretch even further to cover the essentials due to the cost of living. With higher bills than ever, even a small gap in earnings can have a huge effect on our ability to cover the monthly bills.
If you could offer one call to action to advisers during Income Protection Action Week, what would it be?
IPAW is a week full of real things you can use to help you with advising on income protection. I would say take lots of notes! Whether it’s small tweaks like tips on the language you use, or whether it’s re-framing how you approach the topic, there will be lots of useful ideas to try.
What trends are you seeing in client awareness or demand for income protection products?
I still find that most people haven’t heard of income protection, but when we discuss it, people want it because they understand that having a monthly income is vital.
How has the current economic climate (cost of living, inflation, etc.) changed the nature of protection conversations?
I think the cost-of-living crisis has meant people are more budget-conscious, but they also know that their income is vital to cover all their essential bills. There are many ways in which income protection can be made affordable to each client, so it can be a really good fit for people where other types of cover could be more expensive.
What language, tools, or approaches have you found most effective in helping clients understand the value of income protection?
I find going through the monthly bills and expenditure with a client really helps. Work out with them how much they need each month to cover the essentials. Then ask how much sick pay they have. Asking these questions really highlights what they need, without having to “sell” a product.
What do you believe is the biggest challenge advisers face when introducing income protection to clients, and how can they overcome it?
I think the biggest challenge is still awareness. Most people have heard of life insurance, their family members have it in place, or they’ve seen it advertised, so they think it’s something they need. Most people haven’t heard of income protection and often don’t know anyone else who has it, so it makes it harder to discuss. The work the IPTF is doing to help advisers will ensure we are talking about it with every client. It’s important for us all to spread knowledge of the product and make it as normal as getting life insurance.
Rhys Schofield, Protection Adviser for Peak Mortgages & Protection:
Why is income protection more important now than ever before?
The cost of living is going up exponentially more than most people’s sick pay benefits and SSP. If someone can’t work, the wolf is going to be at that door sooner than ever.
If you could offer one call to action to advisers during Income Protection Action Week, what would it be?
Don’t just listen and not change. Make notes and come up with a 30-day plan to implement something that will make you better at what you do.
What trends are you seeing in client awareness or demand for income protection products?
More people are actually asking about income protection as they’ve started to learn what this product is. Certainly, we get fewer blank looks when we first mention it.
How has the current economic climate (cost of living, inflation, etc.) changed the nature of protection conversations?
Whilst people’s budgets are certainly under pressure, it’s even more apparent to them how quickly they’d be in trouble with the loss of an income. SSP, for example, just wouldn’t touch the sides, or even cover a weekly shop for many.
What language, tools, or approaches have you found most effective in helping clients understand the value of income protection?
The biggest thing that helps me is using video calling to share my screen with clients. I show them their options, make my recommendation, and then build a chosen solution together. No arm-twisting, just collaboratively building something that ticks the boxes most important to them.
What do you believe is the biggest challenge advisers face when introducing income protection to clients, and how can they overcome it?
Certainly with mortgages, it’s treating protection as an afterthought. You need to introduce it early and make it clear that protection advice is just as important as mortgage advice.
Cameron Erskine DipPFS, Wealth Management Consultant for SeventySeven Wealth Management Ltd:
Why is income protection more important now than ever before?
Whilst income protection has always been a crucial consideration for any working person, it is more important now than it has ever been. In a world where car financing, subscription services, and buy now/pay later arrangements are part of most people’s normality, our lifestyles are more dependent on our income than ever before. It’s incredible to see the financial services industry finally giving income protection the spotlight it deserves. Protection providers across the industry are showing an increase in income protection sales, which is a testament to the hard work that our community has been doing to highlight its importance.
If you could offer one call to action to advisers during Income Protection Action Week, what would it be?
Start a conversation about income protection. There are plenty of clients out there earning an income who aren’t protected. Without it, everything quickly unravels. If you are unsure about how to approach the conversation or how the product works, join an IPTF session or speak to your Protection BDM. The resources are there; you just need to take the first step.
What trends are you seeing in client awareness or demand for income protection products?
We’ve been seeing more and more younger clients, especially those who are self-employed or business owners, enquiring about income protection. It feels as if the younger generation understands the importance of protecting their income, especially when it is not “guaranteed” in a sense. Whilst this is the case, initial scepticism remains in relation to the cost of the product and how this equates to material value.
How has the current economic climate (cost of living, inflation, etc.) changed the nature of protection conversations?
Most clients, unfortunately, see protection as another bill to be paid, another direct debit leaving their account each month. At a time when the cost of living is stretching incomes to breaking point, this can be a tough pill to swallow. Clients understand the importance of protecting themselves against death, illness, or incapacity, but many still see it as a “luxury” expenditure they feel they cannot afford. Overcoming this is challenging and not always successful.
What language, tools, or approaches have you found most effective in helping clients understand the value of income protection?
Simple, open conversations remain the most effective. Having clients explain in their own words what value they feel income protection would bring them often sparks a eureka moment. For clients with a more logic-based mindset, I’m a fan of Risk Reality tools. They provide statistical chances of needing to claim, which brings the need to life. Zurich’s tool, for example, is particularly effective as it allows you to adjust the deferred period for each client.
What do you believe is the biggest challenge advisers face when introducing income protection to clients, and how can they overcome it?
Two issues stand out. Firstly, many clients have a lingering mistrust of the mis-sold PPI scandal and assume insurance is a scam. This can be overcome by showing them providers’ claims statistics, which speak for themselves. Secondly, price objections remain significant. Income protection can be more expensive than other types of cover, and clients often hesitate. The key is to instil value, help them see how it could safeguard their lifestyle. I sometimes use the analogy of the “cheaper parachute with holes”: you can always find cheaper cover, but it won’t work when you really need it.
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