For many people, the answer is "when we took out the mortgage". Yet our income is often our most valuable financial asset, funding everything from mortgage payments and household bills to childcare and everyday living costs.
The Protection Gap
Recent research* from the Financial Conduct Authority (FCA) found that 58% of UK adults do not hold any form of pure protection insurance, while 59% of those without cover have never considered their protection needs.
At the same time, millions of people insure their pets against unexpected veterinary costs.** According to the Association of British Insurers, 4.6 million pet owners now have pet insurance, with claims payments exceeding £1.23 billion in 2024.
There is nothing wrong with protecting a pet, a car or a phone. The question is whether we are giving the same attention to protecting the income that keeps our households running.
What Would Happen if Your Income Stopped?
It's not always a comfortable question to ask, but it's an important one.
If illness or injury meant you couldn't work for an extended period, how long could your household maintain its current lifestyle?
Many people assume employer sick pay would provide a safety net. In reality, employer benefits often have time limits, and Statutory Sick Pay may be significantly lower than normal earnings. Savings can help, but they may not last as long as expected.
Research highlighted by Royal London*** found that 80% of mortgage holders do not have income protection insurance in place.
For households with a mortgage, that's a significant reliance on continued good health.
Understanding Your Options
Financial protection is not one product. Depending on your circumstances, protection may include:
Life Insurance – designed to provide a lump sum if you die during the policy term, often helping to repay a mortgage or support your family.
Critical Illness Cover – pays a lump sum on diagnosis of certain serious illnesses covered by the policy.
Income Protection – provides an ongoing monthly benefit if illness or injury prevents you from working, helping to support regular household commitments.
The right solution will depend on your personal circumstances, existing benefits and financial commitments.
A Good Time for a Financial Health Check
Many people arrange protection when they buy a home and rarely revisit it. However, circumstances change. Incomes rise, families grow, debts reduce and financial responsibilities evolve.
A regular review can help you understand whether your existing arrangements still reflect your current needs.
Could You Be Better Protected?
If it's been a while since you reviewed your financial protection, now may be a good time to revisit it.
At Rettie Financial Services, we can help you understand the options available, review any existing cover and identify potential gaps in your financial planning. There is no obligation to take out a policy, but a conversation could help you make a more informed decision about protecting what many people consider to be their most valuable asset: their ability to earn an income.
To arrange a protection review, contact the Rettie Financial Services team today.
*FCA Pure Protection Market Study