Nearly 1 in 4 of the working population can be classed as non-traditional or gig-workers (LV= Opinium Survey, June 2020). Your clients are increasingly self-employed, holding multiple jobs and working flexibly… and all with fluctuating earnings.
For mortgage advisers, this can present challenges (but let’s face it, there’s a real appetite to rise to it to help clients buy their new home). When it comes to ensuring clients can keep the roof over their head in the event of a life shock, though, the likes of traditional income protection can be considered too hard, too expensive and, frankly, may not always quite fit.
For many, the regular mortgage (or rent) payment - keeping the roof over their heads and keys to their home - is their biggest outgoing. On average, people spend 18% of their income on mortgage payments and a whopping 37% if they’re renting (English Housing Survey, 2019-2020).
Yet, the classic risk warning ‘your home is at risk if you fail to keep up payments’ is a reality and a worry for some - particularly the more financially vulnerable non-traditional workers. Indeed, over a quarter of homeowners have missed a mortgage payment due to illness or injury (Financial Reporter, 2021), and 76% of employees and 57% of non-traditional workers have said they would last 6 months or less if they were unable to work (LV= Opinium Survey, June 2020).
While traditional income protection works most of the time, it can prove awkward for non-traditional workers who don’t have a regular income, or find it difficult to prove hours worked. This can present challenges, not only at application, but also when your solution needs to deliver when it really counts – in the moment of truth, at claim.
Over the last year, we’ve spent time to understand the barriers advisers face when selling traditional income protection. We identified a gap to deliver a simple-to-explain solution, offering no-nonsense certainty, with a clear focus on helping under-served consumers who are more prone to income shocks.