Many of the forums and workshops we go to as advisers, take great lengths to emphasise the so-called 'protection gap'. This is the number of people in the UK who have no insurance protection plans in place and the potential financial outcome if they are unable to meet their liabilities.
Reinsurer Swiss Re has estimated the protection gap in the UK to be at more than £2.5trn in size, and data from the Association of British Insurers has revealed that, in 2015, 25 per cent of all breadwinners had no life insurance policy in place. This equates to nearly 8.5m people in the UK.
The above figures relate to life insurance alone never mind critical illness or income protection, which in terms of risk; ill health is much more likely to affect many more households across the UK than death before age 65.
Part of our job as your adviser is to make you aware of the risks and make sure the adequate steps are taken and suitable plans are put in place to address these.
But we are faced with the question - why does the protection gap exist?
Many theories are put forward:
We at BPS constantly strive to address these issues. Our social media, blog posts and newsletter are designed to spread awareness and increase education and understanding of the different types of insurance plans available and what each one does to protect you, your home and your family.
We want to close the protection gap and make sure that you, our clients never have to worry about the financial implications of death or ill health.
If you come and talk to us, we'll make sure you don't fall down the gap.