Income Protection 

Guide to the changing face of income protection

  • Describe how sales of income protection differ from other types of protection and why this is.
  • Identify which initiatives have raised awareness of IP and how these have helped advisers start protection conversations.
  • List how income protection has adapted to meet the needs of growing numbers of self-employed.
CPD
Approx.60min
Guide to the changing face of income protection
Income protection sales have historically been lower than critical illness and life cover, so what needs to change?
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Critical illness (CI) and life cover are more well understood by advisers' clients than income protection.

But that is changing as the protection industry and advisers work to change the way income protection is perceived.

This means busting a few myths.

Justin Harper, head of marketing at LV, notes: "Term and CI may be considered a ‘more straightforward sale’ with less underwriting, and benefit from the ‘lottery effect’ of a large lump sum.

"Conversely, IP covers more eventualities, with a higher probability of claim, and has more risk factors to take into account – and people don’t naturally appreciate the true value of income."

This guide, which is worth an indicative 60 minutes of CPD and can be read by clicking in the image above, asks how do sales of income protection compare to critical illness and life cover?

It also considers what initiatives have helped create awareness of income protection and what advisers need to do to make sure they have a conversation about income protection needs with clients.

Finally, this guide in association with LV, will ask, how is IP adapting to meet the needs of the self-employed?

Contributors to this guide: Justin Harper, head of marketing at LV; Emma Thomson, product strategist at British Friendly; Jiten Varsani, independent financial, mortgage and protection planner; Mark Locke, communication director at the Lang Cat; Peter Hamilton, head of market management at Zurich; Rob Harvey, head of protection advice at Drewberry; LV Income Roulette Report; Swiss Re Term and Health Watch 2018; 7Families.co.uk.

Ellie Duncan is features editor of FTAdviser and Financial Adviser

CPD
Approx.60min
  1. Mr Varsani describes income protection as what in the protection family?

  2. Mr Hamilton says of income protection: "We know customers typically overestimate the price." True or false?

  3. According to Mr Harvey, sales of income protection are doing what?

  4. Mr Harper describes a conversation "where protection is considered an intrinsic component of the mortgage solution and process". What does he call this approach?

  5. How many people believe they are not eligible for IP because they are self-employed, according to Mr Harper?

  6. Mr Harvey says self-employed workers' income may be what?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe how sales of income protection differ from other types of protection and why this is.
  • Identify which initiatives have raised awareness of IP and how these have helped advisers start protection conversations.
  • List how income protection has adapted to meet the needs of growing numbers of self-employed.

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