We're all going on a summer holiday: Protecting the income that makes it possible

I spend a lot of time travelling with my role at Royal London, and living on the east coast of Scotland, this often involves a flight to the south of England. One of the things I’ve really noticed over the last few weeks, despite queues and delays, was an air of great excitement.

It got me thinking about how you can help clients protect not only their income, but also the lifestyle and experiences that income helps make possible.

There were so many families thrilled to be going on their summer holiday. Some with small children and babies departing on their first ever summer trip.  I noticed, for the children particularly, the happiness on their faces was undeniable, full of excitement for what the next two weeks would hold.

It started me thinking how disappointed these families would be if they didn’t have this to look forward to, and I know many parents feel it is such a priority for them, they often book more than 12 months in advance.

This raises an important question: what might put this quality family time in the sunshine at risk?

The answer may be closer to home than many clients realise. A parent becoming sick and having to take some time off work or sadly dying prematurely could put pressure on the family's finances. Something we don’t want to think about, but when discussing a client’s lifestyle, we should talk about holidays, particularly when we talk about protecting their income which in turn will protect their lifestyle, including holidays.

Protecting your clients’ income

If a parent passes away suddenly then of course holidays might not be at the top of the list for a grieving family, but in time this could be exactly what the children and their widowed parent need. And a family who are coping with the illness of a parent would, when health allows, benefit from this rest and relaxation.

But as we all know, holidays aren’t free, in fact most hobbies and pastimes families enjoy come at a cost. It's great to have protection in place to pay off that mortgage debt, but we know for many families that simply isn’t enough to keep them in their home and indeed maintain their lifestyle. A plan, such as family income benefit (FIB), can make a real difference to the income coming into a household and as a result go some way to protecting that lifestyle, which of course includes holidays. And income protection can go a long way in replacing a lost income when your clients’ employee benefits come to an end.

Family income benefit

A family income benefit (FIB) plan is the most cost-efficient way for most families to include some extra life cover and importantly some critical illness cover into their protection portfolio.

When reviewing existing arrangements with clients it’s a good idea to make sure their benefits will go up with inflation so that they won’t lose value over time. For example, if they need to make a claim on it in five, 10 or 15 years’ time their plan might not be fit for purpose or achieve the outcome they originally took it out to achieve. 

Income protection

And whilst we're talking about income-based plans, an income protection plan added alongside FIB and mortgage protection can help clients maintain income if they’ve had to take some time off work through sickness.

For many families, holidays are about much more than a trip away. They represent time together, shared experiences and memories that last a lifetime.

By helping clients focus on the lifestyle they want to protect, you can have more meaningful conversations about the value of protection and the role it can play in safeguarding what matters most.

Take a look at the practical support, insight and tools we have available to help you have more confident client conversations.