15th February 2024

Sick pay short falls

I hope everyone's 2024 is off to a great start. For us, there was positive news for the sector with the rise of income protection sales for the start of the year.

Personally, my year began with an urgent operation for a ruptured Achilles tendon, leading to hospitalisation and a week of recovery at home before returning to work remotely. This made me reflect on those in manual jobs – builders, plumbers, drivers, and more - who would face significant challenges if unable to work.

Without sick pay or self-employment benefits, immediate financial strain would arise, challenging a client’s ability to cover bills and essential expenses. Standard Sick Pay falls short, and the process of claiming universal credit or borrowing comes with its difficulties, especially with current interest rates. The clear solution is Income Protection, a crucial safeguard beyond life cover and critical illness policies. Reflecting on my incident, I am fortunate to have income protection, though adding fracture cover might have been beneficial!

This scenario can serve as a reminder: are you effectively conveying the importance of income protection to your clients? Painting a realistic picture of potential financial risks in the face of unexpected health issues is crucial. If uncertain, speak to our Teams here at Cirencester Friendly, whether that be our BDMs or the Adviser Services Team.

Leaving clients to rely on luck in such situations, as I have experienced, would not be a sensible strategy.

Alan Waddington
Director of Distribution at Cirencester Friendly

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