Around 42 per cent of all protection policyholders have experienced personal life changes since obtaining their coverage; however, only 19 per cent choose to make adjustments, leaving 23 per cent without updates, according to LV=.
The Wealth and Wellbeing Research Programme – a study of 4,000 UK adults – has explored attitudes to income protection to coincide with Income Protection Awareness Week (IPAW).
It found that only around 28 per cent asked their financial adviser if they needed to adjust their protection cover.
More than a third of protection policyholders who had a change in circumstances hadn’t considered if any adjustments to their protection coverage were necessary. This increases to 46 per cent of women versus 26 per cent of men.
LV= protection sales and marketing director Mike Farrell says: “Our latest research found that a concerning number do not consider changing their protection cover when experiencing important life changes. When applying for protection cover, many people focus on the here and now, but it is important not to get caught out as families continue to grow in the future.
“Family dynamics are diverse and constantly changing. For example, one in ten parents aged 35-54 live in a ‘blended’ family household supporting children from a previous relationship. As more people depend on household income, it is important to review your protection cover regularly with your adviser so that a sufficient financial safety net is in place.
“We are very proud of our work in introducing LV= Parent and Child cover into the protection market and will continue to equip advisers with more choice to offer tailored solutions for their clients. Being able to offer this level of support when customers need it most will make a real difference to them and their families.”
