Income Protection  

ABI soft launches income gap calculator

ABI soft launches income gap calculator

The Association of British Insurers (ABI) is testing an online calculator, which would work out consumers' likely financial entitlements if they are unable to work due to illness or injury.

The tool, which the ABI has called 'Percy The Protection Calculator', is still in development but aims to give an accurate estimation of likely monthly income if someone is injured or falls ill by tapping into the government's benefit data and combining it with information provided by the user. 

The calculator is aimed at raising consumer awareness and this will be its sole purpose.

The data will not be stored and will not be used for any other purpose – users won't even be required to share their name, first line of address or email address.

The calculator can be found on the ABI's website at www.abi.org.uk/percy.

The ABI is currently seeking feedback on the tool in order to adapt and improve it ahead of a full launch later this year.

Roshani Hewa, head of protection and health at the ABI, said: "Our vision for the creation of Percy is to provide a calculator that gives people the information they need in order to plan their finances and prepare for any unexpected income shocks in the future.

"The data people provide will never be stored or saved for any reason whatsoever.

"We know that Percy isn't perfect just yet, which is why we're so keen for users to engage in its development.

"We'll be working tirelessly towards its full launch later this year, and hope that in the meantime it provides invaluable information to boost people's financial awareness."

Michael Royce, proposition manager at the Single Financial Guidance Body, said the ABI's protection calculator should help people grasp how much of a drop in income they might experience in the event of not being able to work.

Mr Royce said: "This calculator allows people to get a sense of any potential shortfall not made up by either sick pay or other entitlements and to start taking action to build up their financial resilience.

"We hope that employers will look to signpost their staff to the calculator and, at the same time, take the opportunity to alert them to their own policies on sick pay, which research suggests many employees are unaware of."

emma.hughes@ft.com