Income Protection 2012 By Hoskin Financial

Income Replacement

1

Paul Hoskin

Hoskin Financial Planning

What do clients currently insure?

23%

61% 63%

71%

20%

78%

Alien abduction?

Loss of income 9.4%

40,000

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The Reality Check

How would you support yourself

if you were unable work

Reality check:

It is estimated that the average person’s

savings is £2040 as at the end of Q2 2012.

It may sound like a large amount to some

clients but £2040 is only 46 days worth of

savings.

If your clients were unable to work for six

months due to ill health it would leave most

people short on savings*

Source ING Consumer Savings Monitor Q2 2012

*based on average income / 1.3 x average take home pay

Savings?

What’s more 27% of Britons have

no savings whatsoever

Source: ING Consumer Savings Monitor

Q4 2011

6

In the Press…

The plugLoss of income…

Pension would stop…

Use their savings…

Can’t pay the mortgage…lose their home

Life goes down the plughole…

• A plug to stop that happening

Claims statistics

Source: LV= Income Protection Claims Statistics 2010/2011 21121512

Which jobImagine you were made redundant & looking for a new job

You saw an advert in the paper for 2 positions

Both jobs are ideal with exactly the same packages

Except for ONE thing

Job A pays around £35,000pa

Job B pays £34,600 plus,

if you were sick, 60% salary

until you got better or retired.

….which would you take?

The vicious circle

Income not

protected

You fall ill / injure yourself

You take time off to recover

Debts increase / credit rating being

affectedYou return to work too soon

You work too hard to catch up on

workload or to recoup lost income

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‘G’ day…no sex please we’re European

12

From 21 December 2012 insurance will cost the same for

males and females…

The cost of protection is set to

change

Change

=

Opportunity

The Combined Impact of Gender and I minus E

Males Females

Product Currently… The impact of Gender and I minus E ?

Income Protection

Women pay 65% more than men

Combined Critical Illness

Men pay 10% more than women*

TermMen pay 20% more than women

Underwritten Whole of life

Men pay 20% more than women

From 21 December

+20% -28%

+ 6%

+ 3%

+ 2%

+16%

+22%

+20%

* In some cases, women pay more than men

Any

Questions?

Economy & Finance

Income Protection 2012 By Hoskin Financial