Scottish Widows has launched its Flexible Income Protection product, following research that found fewer than one in 10 people have cover in place if their income stopped suddenly.
According to research from the insurer, 42% of adults worry that their household would not cope if they were unable to work.
The research also revealed a gender protection gap, with 29% of surveyed women saying they could not afford protection compared with 23% of men.
In addition, more than a quarter (29%) of women surveyed said they would expect to rely on a partner’s income if they were unable to work.
In response to these figures, Scottish Widows launched an income protection product, created to help bridge the income protection gap.
The product was designed to be easy to understand for both established protection advisers, holistic advisers, and those who may be new to advising in this area.
Benefits include fracture and hospitalisation cover at no extra charge and a rehabilitation or proportionate benefit to support clients in returning to work.
Clients can also access partnerships such as ‘Clinic in a Pocket’ for 24/7 GP access and a personal nurse service through Red Arc.
Immediate income payments will also be available while claims are being assessed, provided a GP note is supplied.
Additional benefits include a price lock promise for 12 months and a minimum benefit guarantee of £1,500, even if earnings have decreased.
As part of the launch, Scottish Widows joined the Income Protection Task Force (IPTF), formalising its long-term commitment to open dialogue on ways to extend income protection across the country.
Rose St Louis, protection director, Scottish Widows, said: “Life doesn’t always go in a straight line and an unexpected adverse health event can have a significant impact on our ability to remain financially stable.
“This is where products like income protection can come to the rescue and have a meaningful impact in reducing income ‘troughs’ if you’re unable to work due to illness or disability.
“Launching income protection is part of our effort to help customers feel prepared, no matter what life throws at them.
“Our research shows women are less likely to have protection, and we want to be part of the solution towards closing the gender protection gap while also making it easy for established protection writers, as well as those new to protection, to write this type of business.”
Jo Miller, co-chair of the Income Protection Task Force, said: “The Income Protection Task Force (IPTF) welcomes Scottish Widows’ timely launch of their flexible income protection cover, addressing a critical issue highlighted by their recent research: a significant gender protection gap.
“This will support the pressing need for accessible and affordable income protection solutions.
“This product, designed for simplicity and flexibility, looks well positioned to help address these disparities and support a broader demographic.
“Additionally, integration of this product into the digitised Scottish Widows Protect platform should enhance the overall client experience. “
Miller concluded: “Scottish Widows’ membership of the IPTF signifies their long-term commitment to collaborative efforts aimed at expanding income protection coverage across the UK.
“We look forward to continued dialogue and initiatives that will drive greater awareness and adoption of income protection solutions.”
