FTAdviser.com

Advertising

In 2007, some 111,780 sales were recorded according to Swiss Re, out of a working adult population of nearly 30m.

Income protection pays a proportion or income if you cannot work and meet a defined definition of incapacity. It is a hugely important financial services product and a very basic one.

While many will receive some form of help from their employer, should they become disabled and cannot work, such help, if available if at all, will likely be limited in terms of timescales and amount.

Customers do not naturally consider their protection needs, something else often triggers it, perhaps some form of debt such as a mortgage, maybe a lifestyle change, although the need is usually stimulated through the involvement of a financial adviser.

The need for income in times of sickness will be overwhelming. Today, some 2.62m people are claiming incapacity benefit while 2.2m of working age will be off work for at least six months at any one time through sickness and disability.

No-one would argue against the need for an income protection plan, which effectively pays to the plan expiry date.

But where budget is an issue, as it might be for many current customers, it might be worth considering at least some form of income protection benefit rather than none at all.

Gerry Warner is protection development manager of Zurich UK Life