IP decline driven by cost and lack of need - Defaqto

clock

The combined effects of cost, complexity and a perceived lack of need of income protection (IP) are fuelling a growing market gap which currently tops £190bn, 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. However, it points out sales are falling year on year and argues advisers, insurers and commentators pay lip service to the product. It says IP remains ‘nobody's child’. Defaqto’s report explores the challenges facing IP, focusing on the products currently available and the reasons for its poor take-up. Ben Heffer, principal consultant at Defaqto and author of the report, says: “Product complexity and...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Protection

The protection gap is not a surprise - treating it as one is

The protection gap is not a surprise - treating it as one is

'This is not mysterious. It is what this market is built to produce'

Tony Müdd
clock 09 September 2026 • 4 min read
Aviva in high value protection proposition launch

Aviva in high value protection proposition launch

Rising demand for IHT planning

Cameron Roberts
clock 25 August 2026 • 2 min read
Advisers are changing their views on joint life cover

Advisers are changing their views on joint life cover

What represents true value for the client?

Alan Lakey
clock 11 August 2026 • 3 min read