"Engaging clients at the right moment and making protection simple, relevant and actionable means it's there for families when they need it most."
- Justin Garbutt - Vitality
Many parents with children under the age of 18 lack the financial buffer and protection needed if illness or injury left them unable to work, new research from Vitality has revealed.
One third, or 32%, said they could only cover essential expenses for less than three months if their income stopped, leaving families exposed to even short-term disruptions.
The greatest concerns for parents, should they be unable to work for a year due to ill health, show that the effects of an income shock extend far beyond affording day-to-day luxuries.
50% were worried about paying household bills, 49% were concerned about paying their rent or mortgage, and 46% worried about affording food and other necessities. Notably, four in ten reported that their ability to provide for their family would be a concern should their income stop.
Despite these concerns, many parents remain under-protected. While 37% said they considered taking out income protection when they had children, only 18% went on to do so.
Vitality says that for many, this suggests that the intent is there and the value of protection is understood, but prioritising protection amid the demands of family life and competing demands for time could be holding people back.
In fact, 13% said they would like to take out protection but haven’t got round to doing so yet. Cost is also a driving factor, with 31% saying they don’t think they can afford it.
On top of this, existing savings, which may be seen as a safety net, are often insufficient to bridge the gap. 31% of parents of under-18s reported having less than £3,000 set aside to fall back on, leaving little room for unexpected income shocks should they arise.
Vitality says that these findings highlight an opportunity for advisers to prioritise income protection conversations with families around key life moments, such as having a baby, to support clients in turning intention into action when it is at the forefront of their minds, and the importance of fully explaining the value and role of the insurance.
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"There is a clear gap between how much parents value protection and how often it gets acted on," Justin Garbutt, director of IFA Distribution at Vitality, commented. "Many recognise its importance, but good intentions are not always translating into action.
"For advisers, that's a real opportunity. Engaging clients at the right moment and making protection simple, relevant and actionable means it's there for families when they need it most."
