Jamie Page
|Head of Protection Distribution at The Exeter
While inflation has eased from recent highs, many households are still struggling to make ends meet. Our research shows that 41% of UK adults feel less financially secure than they did a year ago, and only 22% say they are “very confident” their family would be financially secure if something unexpected happened1. It’s a reminder of just how many people are only one event away from real financial hardship.
That’s why access to insurance, in particular income protection, can’t be overlooked. The Treasury’s Financial Inclusion Committee has identified it as a priority for improving financial inclusion2, and the Association of British Insurers has urged action on underinsurance and the accessibility of all insurance products3. The question is how we turn that recognition into real awareness and practical access – particularly for those who would struggle to cover everyday costs if they couldn’t work.
Why inclusion matters now
Income protection has an important role to play in building financial security – and it’s clear that uptake is on the rise, with sales increasing by 18.4% in 2024 according to Swiss Re4.
This is a positive movement, but sales still sit behind life and private medical insurance, so there is still a way to go until every UK adult has a firm understanding of income protection and what it could mean for their lives.
We know that the need is there, but the problem is that many UK households don’t realise just how vulnerable they are. Statutory Sick Pay is just £118.75 a week5, compared with an average weekly rent of £252 for private renters6. Only 27% of workers know the true figure, and nearly a third assume they’d get more support than they actually woul.
Low awareness, misplaced confidence in state support, and declining financial security all point to the same issue: the need to improve access to insurance for people who are at the highest risk of financial vulnerability. Income protection can help fill that gap, but the industry has to do more to make sure it reaches the people who need it most.
Making income protection accessible
For too long, protection conversations have tended to focus on the same types of customers – homeowners with families and steady incomes. But many underserved groups also need support, from renters and carers to the self-employed and people living with long-term health conditions. Each face different challenges, but all share the same need for greater financial security.
Improving access to income protection isn’t just down to policymakers, insurers or advisers – it’s something the whole industry needs to work on together. But I firmly believe that advisers hold the key when it comes to widening protection conversations.
Advisers are the ones who can bring inclusion to life by helping clients understand the risks they face and showing that income protection can work for them. Across the income protection journey its advisers who are closest to the customer and their day-to-day reality – whether that’s a self-employed worker worried about covering bills between contracts, a carer juggling multiple responsibilities, or someone with a long-term condition unsure what cover they can get.
By tailoring conversations to what truly matters to each individual, protection becomes more relevant and meaningful.
Increasingly, providers are offering flexible underwriting and inclusive solutions. By using pre-sales tools or engaging directly with insurers, advisers can set realistic expectations and build confidence.
What’s more, they can adapt their approach to suit different needs whether that’s reframing questions, using visual aids, or simplifying language. Talking about rent and bills instead of family expenses, for example, makes the conversation more relatable for renters or single-income households. And for neurodivergent clients, clarity and accessibility are key.
Ultimately, we have the collective power to make protection inclusive and not just in theory, but in practice.
Looking ahead
The case for making income protection more inclusive is clear. For a growing number of people, it’s the most practical safeguard against financial vulnerability. By combining product flexibility with open conversations between advisers and clients, and by continuing to demonstrate reliability through claims paid, income protection can move closer to where it belongs: at the heart of financial planning.
1 – The Exeter Consumer Research, August 2025
2 – www.gov.uk
3 – www.abi.org.uk
4 – Swiss Re Term and Health Watch 2024
5 – www.gov.uk/statutory-sick-pay
6 – www.nimblefins.co.uk
This content was originally published in IFA Magazine on 1st December. To view the original insight visit Why income protection matters most for the financially vulnerable - IFA Magazine
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