More opting for income protection insurance

More opting for income protection insurance

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

1 ABI