Providers ‘must help’ Seven Families project

Launched in London on 22 May, the Seven Families project aims to illustrate the benefits of IP by providing a monthly income for seven families whose main breadwinner is unable to work due to illness or injury.

The campaign is the brainchild of Peter Le Beau, chairman of the Income Protection Task Force, who is urging insurers to commit £20,000 each to pay the families’ incomes.

The payments will make up 48 per cent of the campaign’s total budget, while another 22 per cent will be spent on films following the families’ progress.

Communications and advertising will account for 21 per cent of total spend, while 9 per cent will be given to Disability UK, which will help to find the families who will take part.

Mr Jeynes said that £20,000 should “not be a difficult sum to raise in the grand scheme of things”, when considering how much insurers spend on advertising and marketing.

PruProtect has joined three other insurers – Zurich, Ageas and Ellipse – in pledging their support for the venture. Aviva, Scottish Widows, Friends Life and others have also signed up.

Steve Payne, managing director of protection at Friends Life, said: “It is vital that the awareness and profile of IP is increased to promote the real value it offers. People are happy to insure their mobile phones and their pets but appear reluctant to cover their income.”

Seven Families budget:

Families payment 48%

Films documenting project 22%

Communications/advertising 21%

Donation to Disability UK 9%

Source: Seven Families

Adviser view

Roy McLoughlin, partner at London-based Master Adviser, said: “This is about one concept and that is awareness. While this applies to the public, it is also crucially relevant to the advisory community. IP needs explanation but also belief and unfortunately there are many confusing areas surrounding what really is a very simple concept. If your clients are ill, they need cover. Relying on the state or your employer is a very risky strategy.”