Recent figures indicate that more people than ever are taking out income protection insurance.
In 2023, individual sales of income protection reached 247,000 – a 16% annual increase and a record high since data was first collected in 20001. 97% of these sales were purchased with advice, emphasising the importance of taking advice. More people are also opting for critical illness cover, with 75,700 standalone sales last year – nearly four times higher than a decade ago.
Expert opinion
Yvonne Braun, the ABI’s Director of Policy, Long Term Savings, Health and Protection commented, “Financial resilience – the ability to withstand a financial shock – is a hugely important issue. It’s encouraging to see that so many people recognise that income protection and critical illness insurance are an important part of financial planning and play a crucial role in providing a financial safety net”.
Decline in general activity
Despite the rises in critical illness and income protection, the general protection market has seen a slowdown in activity. Last year, the number of individual contracts across all protection products decreased to 2.1 million – the lowest since 2018.
As with all insurance policies, conditions and exclusions will apply
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