Under performing IP widens gap

The combined effects of cost, complexity and a perceived lack of need for income protection (IP) are fuelling a growing £190bn market gap for IP insurance, a report suggests. Defaqto's annual Income Protection Insight Report describes IP as "the single most important financial planning need" and says it should be the first consideration in any financial plan. Author Ben Heffer, principal consultant at Defaqto said: "Achieving a more affordable product for the client inevitably means asking more detailed questions at the application stage."