The self-employed population is under-protected, despite the fact it is growing rapidly. Why is income protection the missing piece of the financial puzzle they are most likely to need?
According to the Office for National Statistics (ONS), there are five million self-employed people in the UK. This isn't just young urban millennials looking to earn a little extra cash each month. It includes older individuals, many with families to support, whose later years in employment may be vital to their pension pots.
According to The Exeter's ‘Ill Prepared 2020' research report, anyone that works for themselves is more susceptible to an income shock than an employee. This could be because of a new contract failing to materialise, illness or injury preventing them from working, or an unexpected event impacting the economy on a national or global scale.
The majority of those surveyed by The Exeter are self-employed on a full-time basis: they are management consultants, financial experts, freelance photographers, shopkeepers and farmers. However, as The Exeter survey shows, less than one in 10 self-employed workers protect their income. This is despite the fact that income protection is the type of insurance they are most likely to need.
"We believe advisers can help change this. Our research is aimed at informing advisers about the benefits of income protection and helping them to discuss this important product with any client who could benefit," says Steve Bryan, Director of Distribution and Marketing for The Exeter.
The professional diversity and economic breadth of this rapidly growing workforce has created a massive opportunity for financial advisers to start protection conversations with clients today - whatever their age or occupation.
COVER has teamed up with The Exeter to bring you a guide to financial resilience for the self-employed. Click here to access the guide for free today.