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Overview on Income Protection by Paul Hoskin at Hoskin Financial Planning Maldon Essex
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Income Replacement
1
Paul Hoskin
Hoskin Financial Planning
What do clients currently insure?
23%
61% 63%
71%
20%
78%
Alien abduction?
Loss of income 9.4%
40,000
The Reality Check
How would you support yourself
if you were unable work
Reality check:
It is estimated that the average person’s
savings is £2040 as at the end of Q2 2012.
It may sound like a large amount to some
clients but £2040 is only 46 days worth of
savings.
If your clients were unable to work for six
months due to ill health it would leave most
people short on savings*
Source ING Consumer Savings Monitor Q2 2012
*based on average income / 1.3 x average take home pay
Savings?
What’s more 27% of Britons have
no savings whatsoever
Source: ING Consumer Savings Monitor
Q4 2011
6
In the Press…
The plugLoss of income…
Pension would stop…
Use their savings…
Can’t pay the mortgage…lose their home
Life goes down the plughole…
• A plug to stop that happening
Claims statistics
Source: LV= Income Protection Claims Statistics 2010/2011 21121512
Which jobImagine you were made redundant & looking for a new job
You saw an advert in the paper for 2 positions
Both jobs are ideal with exactly the same packages
Except for ONE thing
Job A pays around £35,000pa
Job B pays £34,600 plus,
if you were sick, 60% salary
until you got better or retired.
….which would you take?
The vicious circle
Income not
protected
You fall ill / injure yourself
You take time off to recover
Debts increase / credit rating being
affectedYou return to work too soon
You work too hard to catch up on
workload or to recoup lost income
‘G’ day…no sex please we’re European
12
From 21 December 2012 insurance will cost the same for
males and females…
The cost of protection is set to
change
Change
=
Opportunity
The Combined Impact of Gender and I minus E
Males Females
Product Currently… The impact of Gender and I minus E ?
Income Protection
Women pay 65% more than men
Combined Critical Illness
Men pay 10% more than women*
TermMen pay 20% more than women
Underwritten Whole of life
Men pay 20% more than women
From 21 December
+20% -28%
+ 6%
+ 3%
+ 2%
+16%
+22%
+20%
* In some cases, women pay more than men
Any
Questions?
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