The Intermediary –- May 2026 - Flipbook - Page 25
I N P RO F I L E
of take-up, there is a greater awareness now of its
role in overall financial resilience.
Nevertheless, Godley feels there is still work to
be done, adding: “We have seen a growing interest
in [IP] as customers seek greater security in the
current economic climate.
“But income protection is often misunderstood
and overlooked. There’s a clear knowledge gap.
“Many consumers have little or no
understanding of income protection, with some
confusing it with other protection products. So,
while awareness has improved in recent years,
understanding has not always kept pace.”
This lack of understanding has affected some
cohorts more than others, resulting in underserved
segments among both younger people –
particularly renters – and the self-employed.
This, Godley explains, is not due to a lack of
suitable products available in the market, but
scepticism and a lack of awareness. As a result,
people are going unprotected when there are
solutions waiting for them.
“Many younger people postpone those
important financial decisions until they reach
milestones like marriage or buying a home,” she
says. “With these events occurring later in life
these days, the younger generation often view
protection as less relevant to their circumstances.
“Meanwhile, nearly half of those who are selfemployed lack [IP], usually due to scepticism about
its value and concerns about insurers paying out.
This highlights the need for better education and
trust building.”
see real engagement with their customers and
commitment to purchase.
“It's not about selling a product, it's about selling
a need. The earlier we integrate that protection
discussion, the better it is.
“Advisers play a critical role in dispelling myths
around affordability versus need.
“In any walk of life, if you understand the need
really well and realise you can’t live without a
certain product, then the cost is secondary.”
Key to this is the introduction of real-life
examples to engage customers with the product,
particularly those like the self-employed who
might not see how it fits for them, but are also
inherently more vulnerable due to a lack of sick
pay provisions and other benefits.
Similarly, where lower income or private renting
households see protection as being “a luxury
for wealthier individuals,” this leaves them at
even greater risk, all while sitting on less of a
savings buffer.
“It does require targeted education, improved
communication and greater accessibility to
products and advice, which is obviously where the
broker comes in again,” says Godley.
While providers like L&G continue to focus on
seamless customer journeys and flexible products
to fit increasingly complex modern needs, Godley
calls on brokers to talk to their customers on a
deeper level about their needs, growing their own
holistic understanding of their circumstances.
When advice focuses on the whole customer,
the right protection products can fall into place.
Practical conversations
This is where product providers, brokers, and
networks come in. Where IP in particular used
to be treated as an add-on or final element of
the overall property purchase discussion, more
networks are now training brokers to place it at
the heart of their advice standards.
Godley says: “As an industry, the priority must
be equipping advisers with the knowledge,
capability and confidence to address any sort of
misconceptions and support the customers in
building their long-term financial resilience, and
income protection is a very key part of that.”
This is not just about selling more protection,
but an overall reframing. L&G supports advisers
and networks in putting protection at the forefront
of their conversations with clients, including
speaking to them in practical – not product-first
– terms. This means sitting down with the client
to get under the skin of their financial resilience,
asking the difficult questions about what would
happen if they were to get sick or pass away.
Godley says: “We're seeing a lot more of these
discussions held up front, and that's where we
JULIE GODLEY
