EDITION 1 | MAY 2021
19
Stephen Crosbie
Protection Director Aegon
While many people would rather insure their car or mobile phone than their income , what they don ’ t seem to realise is that they ’ d likely manage just fine without these things . But if their income unexpectedly stopped , could they manage without that ? Probably not .
Protecting your clients ’ income
We ’ ve analysed the number of new protection policies bought in the market in 2019 compared to the number of claims paid that same year . As the table shows , almost 1 in 10 of us needed to claim on an income protection policy , compared to just 1 in 40 claiming for life insurance . Yet income protection remains the least purchased benefit .
New policies bought in 2019 ( 1 )
Claims paid in 2019 ( 2 )
Chance of claiming
Life protection 1,602,170 39,638 2.5 % Critical illness 539,312 17,995 3.3 % Income protection 179,605 16,591 9.2 %
With stress , depression and anxiety accounting for 51 % ( 17.9 million working days ) of all work-related ill-health absence in 2019 / 2020 ( 3 ) , this highlights the importance of having some level of income protection – especially as these conditions aren ’ t generally covered by life or critical illness policies . And nowadays the income protection options available are more affordable than ever before .
We found that money worries were a key cause for concern for more women than men ( 76 % vs 72 %) ( 4 ) . And worryingly , a third of the women we surveyed said they felt under prepared for a financial emergency compared to just a quarter of men .
With 61 % of income protection policies being sold to men ( 1 ) , are we as an industry missing a trick ?
It pays to be prepared
No-one likes to think of the worst happening , but it pays to be prepared . Would your clients really want to have to rely on their savings in an income emergency – and realistically , how long would they last ?
Our latest research ( 5 ) found that 36 % of people in the UK don ’ t have any emergency savings – with those who do only having enough to last 18 weeks . And while government support may be available , it ’ s often overestimated with the level and availability of state benefits uncertain and generally dependent on individual circumstances .
Including income protection as part of your clients ’ overall protection package would give them a financial safety net should the worst happen – letting them concentrate on getting better and returning to work .
Helping your clients realise their protection needs
Our personal liability audit keeps things simple , letting you quickly and easily uncover this with a simple set of questions , without the need to discuss possible solutions . The answers quickly establish your clients ’ monthly income and outgoings – helping them see their need for cover and how important protecting their current lifestyle is . Download it today from aegon . co . uk / protectiondocs
We offer a wide range of protection solutions to help your clients prepare for the unexpected – helping you provide your clients with comprehensive , yet affordable , cover .
As well as offering financial support , all our protection benefits include Policy Plus – our range of support services – at no extra cost , for your clients and their immediate families to use from the start of their policy .
Visit aegon . co . uk / exactly-what-you-need to find out more .
For intermediaries only
Sources : 1 . Swiss Re Term and Health Watch 2020 . 2 . ABI Press release – May 2020 . 3 . Health and Safety Executive , Work-related stress , anxiety or depression statistics in Great Britain 2020 , 4 November 2020 . 4 . Aegon / YouGov financial wellbeing research . Fieldwork undertaken 5-16 December 2019 . Total sample size was 2,000 employees . The figures have been weighted and are representative of British business size . 5 . Aegon Financial Wellbeing Index . Fieldwork undertaken during August and September 2020 . Total sample size was 10,466 UK residents . The study was nationally representative in terms of location , age and gender .