Unless someone has substantial savings or inherited wealth, Ian Smart, head of product development and technical support of Bright Grey, points out that most people rely on their salary to pay for everything.
If that income were to stop, due to an illness or death, Mr Smart says advisers should ask all of their clients - not just those with spouses or children - how would they or their family continue to pay the mortgage or rent, utility bills, school fees and holidays?
Mr Smart says: “Taking out protection will give peace of mind that if the worst does happen they will still be able to pay the bills.”
These types of protection products are ideal for those with young families, according to Chris McNab, protection product manager of LV.
He says: “Adviser feedback indicates that many clients are anxious about the thought of their loved ones having to make investment decisions if they were no longer around which is why they opt for a family protection product.”
Peter Hamilton, head of retail protection propositions of Zurich, points out it is not just the salary of the bread winner that needs protection.
Mr Hamilton says: “Most people are happy to insure their house and its contents, their car, their cat, their travel plans or their mobile phone, but they often give little thought to the income that funds their lifestyle.
“Death, long-term sickness and disability are subjects most of us would rather avoid discussing.
“Insurance cannot hope to deal with the emotional impacts of such events but it can minimise the financial impact if the worst happens. Everyone with dependents should consider family protection.”
