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Grounding Protection in Reality

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    Protection insurance has a very real impact on people’s lives, providing a sense of normality in the most trying circumstances. Too often, however, it can be seen as removed from reality.

    Fact or Fiction?

    One in ten British adults has taken out or considered taking a protection policy, a rate that rises to almost one in five for those aged 18 – 341. This is an encouraging figure – but it sill leaves millions missing out on protection.

    A variety of myths, ranging from price concerns to availability, still prevent many from seeking vital cover.

    Context is king

    Putting protection in a real-world context is the key to judging its true value. Upfront and accessible discussions can help you to understand the role protection can play in your personal and professional life. 

    For example, income protection can start from as little as £10 a month, about the same as a streaming subscription. Or, at less than £2.50 a week, this can be cheaper than one takeaway coffee.

    When you compare the cost of protection to real-world examples, it can make the expense seem more affordable and ground it firmly in daily life. 

    In your shoes

    As well as comparisons for cost, imagining how protection could benefit yourself and your family can further sharpen its appeal.

    If you can picture yourself in a time of need or put yourself in the position of someone who has benefitted from protection insurance, it can hit home much more than cold figures about the financial incentive.

    Do you think that protection plans rarely pay out? Well, here are some facts. The value of an average protection payout now sits at £14,9942, while one leading company paid out 98.2% of all claims in 20213. This shows that, in the real world, millions of people are benefiting every day from their protection plans.

    The time is right

    It can be difficult to know the right time to take out protection. Many people delay seeking insurance until they think they might need it. Indeed, most mortgage holders4 say it would take an unexpected change in circumstance to occur before they would consider purchasing protection. 

     As with all types of insurance, however, premiums generally vary according to age and state of health so being young and healthy means you’ll probably get a better deal. Getting a policy early on in life gives you vital protection for longer – and can be cheaper in the long term.

    That said, it’s better late than never. It’s normally not too late to seek protection. If you are in good health, you are likely to be able to get a cheaper policy than someone 10 years younger who is showing signs of poor health.

    Talk to us

    We’re here to chat in the real world to help you find a protection policy that suits your lifestyle and budget.

    As with all insurance policies, conditions and exclusions will apply.

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    Andrew Simmonds

    Andrew Simmonds is the managing director at Simmonds Mortgage Services. He's been providing mortgage advice to home owners for many years.

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