Scottish Widows has launched an income protection product after uncovering the “concerning” state of UK customers’ financial vulnerability.
The insurer detailed that its product has been designed to be simple and easy to understand for both established protection advisers, holistic advisers, and those who may be new to advising in this area.
Scottish Widows protection director, Rose St Louis, 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.”
The income protection launch enhances the suite of products available through the recently digitised Scottish Widows Protect platform and via the UnderwriteMe Protection Platform portal; the product will be available on other protection portals in the coming weeks.
Clients can amend conditions throughout the life of cover including the policy term, the deferred period, and the sum assured.
Flexible Income Protection also offers a risk review if health improves.
As part of the launch, Scottish Widows has joined the Income Protection Task Force, formalising its long-term commitment to open dialogue on ways to extend income protection across the country.
Income Protection Task Force co-chair, Jo Miller, said: “The 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.
“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.”
Research
The announcement follows research conducted by the insurer which looked at the vulnerability of UK customers.
The research found that less than one in 10 (8 per cent) people in the UK have cover in place if their income stopped suddenly and that 42 per cent of UK adults worry that their household would not cope if they were unable to work.
Scottish Widows' research also revealed a gender pension gap, with 29 per cent of surveyed women saying they could not afford protection compared to 23 per cent of men.
Additionally, over a quarter (29 per cent) of women surveyed said they would expect to rely on a partner’s income if they were unable to work.
