With it having just been Income Protection Action Week (IPAW), it is an opportune time to reflect on the critical role that Income Protection (IP) plays in financial planning and that it plays a significant role in protecting an individual or family against an unforeseen circumstance. This is backed up by IP sales which are starting to rise. UnderwriteMe, steadfast in its commitment to promoting the benefits and understanding of IP invites financial advisers to join this vital conversation.
Why IP Matters
Imagine a client suddenly unable to work due to illness or injury. Recent research highlights some concerning statistics: 7 in 10 workers do not have IP, and only 2 in 10 homeowners with a monthly mortgage have an IP policy. Without an IP policy, the loss of income could quickly jeopardise their financial security. However, with an IP policy in place, they can receive a substantial portion of their income throughout their recovery. This crucial support helps them manage their financial obligations, maintain their lifestyle, and focus on getting better without the added worry of financial instability. Income Protection truly serves as a lifeline in difficult times.
A Case Study: The Value of IP
Nigel is 29 and owns his own home. He works in IT and earns £50,000 per year. Nigel suffers a serious back injury, leading to a 9-month work absence for surgery and a 2-year recovery period.
Without an IP Policy: Nigel gets full sick pay from work for 1 month. After that, he receives £116.75 per week in Statutory Sick Pay for up to 28 weeks, which doesn't cover his expenses. This forces him to take out loans, sell his home, and move back with his parents, causing significant stress and depression.
With an IP Policy: After the initial sick pay from his employer, Nigel's IP policy pays out 65% of his salary (£2708 per month). This covers his bills and expenses, allowing him to recover without financial pressure and return to work when ready.
The Adviser's Role
IP sales are rising, a trend backed by the Association of British Insurers (ABI), reporting a 16% increase in IP policies to 247,000 last year. However, many clients may not fully grasp the benefits of IP or may find the range of policy options overwhelming. This is where you, as a financial adviser, can make a profound difference. You play a pivotal role in helping clients understand why IP is essential and guiding them to the most suitable policy for their needs
UnderwriteMe's Commitment
At UnderwriteMe, we're committed to making your job as an adviser easier and more effective. Our platform has experienced a 28% growth in IP policies sold from the first half of 2023 to the same period in 2024 - a clear indication of increased awareness and trust in the platform.
We've also expanded our panel of providers, recently adding Vitality IP and Holloway IP, with plans to welcome even more providers in the coming months.
Our platform's advanced technology ensures that 75% of clients receive a point-of-sale decision, reducing wait times and making the application process smoother for you and your clients. This efficiency not only helps build client trust but also encourages broader adoption of IP.
Additionally, with the Protection Platform, you can conveniently bundle products such as Critical Illness cover, Life Insurance, and Income Protection into a single application. This feature saves valuable admin time and enhances overall client satisfaction by streamlining the purchasing process.
The Way Forward
Together, advisers and UnderwriteMe can work towards a future where IP is a cornerstone of financial planning - a future where fewer people face financial uncertainty due to unforeseen life events.
Join the Protection Platform from UnderwriteMe today. Register at https://protectionplatform.co.uk/signup or log in at https://protectionplatform.co.uk/login if you're an existing user.
Income Protection Action Week is more than an event - it's our ongoing commitment to your client's financial security. Let's make every week IP Action Week!