In the industry, we’re well aware of the term ‘protection gap.’ There is a lack of awareness amongst consumers about their situation should they be unable to work long-term. Nowhere is this clearer than with Statutory Sick Pay (SSP). Our ‘Workplace Wellbeing’ research found that:
- Employees grossly overestimated the value of SSP (which is currently £88.45 as of April 2016) by an average of 62%
- Three quarters (76%) of employees thought SSP was £100 or more per week, and 15% even thought it was over £200 and;
- Once these employees were aware of the reality of SSP, three-quarters of them said they would only last at most one month before having to cut back on monthly outgoings.
This is where income protection could make a real difference, helping to provide the financial security families need by paying out a monthly benefit to help replace the policyholder’s monthly income should they be unable to work due to an accident or long-term illness.
To help you discuss income protection with your clients, we’ve refreshed our range of income protection support materials including our Income Protection Checklist and Budget Planner Tool.
