Conscious clients
The Covid-19 pandemic was a real example of people on a mass scale becoming conscious of their mortality. Consequently, this created a shift in the way clients viewed themselves; as less indestructible and more bound to protecting their loved ones and assets.
This has led consumers to be more open about health and mental health and, as a result, interest in protection policies have increased.
The figures from SPW also found that while only 28 per cent of UK adults currently have some form of personal protection insurance, Covid-19 has changed people’s attitudes towards it somewhat.
Almost a third (29 per cent) of those currently living without personal protection insurance said that the pandemic has made them more likely to consider protection, rising substantially to 53 per cent among those who earn more than £50,000 a year.
Martin Reynolds, chief executive of SimplyBiz Mortgages, says: “In a world of uncertainty, protection policies give a client a sense of reassurance and control. When life gets tough, being able to prioritise health rather than worrying about bills and mortgages is an ideal situation.
“When it comes to phone insurance, we can physically see the product and use it regularly, however protection policies just appear as direct debits, with little understanding of what the service offers. Thus, it is important to pick a policy that works for the individual and has added perks that are very beneficial should you face an unexpected situation."
Protection policies are not limited to payouts, though. Clients can benefit from a range of added benefits including access to doctors, bereavement counselling and quicker testing for medical conditions.
Protecting employees
Varsani explains that lifestyle protection planning should start with the first employment a client has.
Research from Direct Line Life Insurance revealed that one in six companies (16 per cent) reduced an employee’s wage to statutory sick pay after four days of sick leave, but found more than 2.5m employees were unaware they would face a significant salary shortfall if they are unwell and are unable to work.
Even though the UK is a welfare state, there is a misunderstanding that consumers will be taken care of long term. Government support is simply not enough for clients looking to cover all their bills and expenses.
