"When applying for protection cover, many people focus on the here and now, but it is important not to get caught out as families continue to grow in the future."
- Mike Farrell, protection sales and marketing director at LV=
LV=’s Wealth and Wellbeing Research Programme, published to coincide with Income Protection Awareness Week (IPAW), explores attitudes to income protection, especially after significant life events. Of those surveyed (4,000), over a third of protection policyholders who experienced a change in circumstances failed to consider whether they should speak to a financial adviser about adjusting their protection cover. This rose to 46% amongst women compared to 26% of men.
Meanwhile, only 19% adjusted their protection policy after a significant life event despite one in ten adults in the UK with a protection policy welcoming a child or changing jobs since the start of their policy. In both cases, this was more likely among 18-34 year olds compared to other age groups.
LV= warns that as household priorities shift over the years, it’s important to review protection policies to see if they can better support significant life events or job changes. Changes to employment, family planning or relationship status could render an existing income protection policy inadequate.
Commenting on these findings, Mike Farrell, protection sales and marketing director at LV=, has said:
“Our latest research found that a concerning number do not consider changing their protection cover when experiencing important life changes. When applying for protection cover, many people focus on the here and now, but it is important not to get caught out as families continue to grow in the future.
“Family dynamics are diverse and constantly changing. For example, one in ten parents aged 35-54 live in a ‘blended’ family household supporting children from a previous relationship. As more people depend on household income, it is important to review your protection cover regularly with your adviser so that a sufficient financial safety net is in place.”