Protecting Families. Getting the conversation started. Retirement Investments Insurance Health

Transcription

1 Retirement Investments Insurance Health Protecting Families Getting the conversation started For financial adviser use only. Not approved for use with customers.

2 Unearthing opportunities in an ever-changing landscape At Aviva, we re constantly monitoring the protection market, looking for gaps and uncovering opportunities that you could benefit from. Our latest report, Protecting our Families, has revealed some eye-opening facts and statistics about families and the fundamental ways in which their lives and habits have changed. What s clear is that a large number are not necessarily thinking about how they would get by if something were to happen. We understand the important role you play in helping to protect people against unforeseen circumstances. We want to help by sharing the insights our research has uncovered, so you can highlight protection needs with your clients. Needs that they may not have thought about themselves.

3 Redefining families The way we live has changed in recent decades, with more people renting and fewer getting married. In fact, your unmarried clients could be among the number of couples who are cohabiting and have children, or are considering starting a family soon. Our research shows that because many families are missing these key milestones, they re not being prompted to consider essential cover. And if you look at the wider picture, living in post-brexit UK means that uncertainty and the unexpected are everyday realities for us all. Of course, this is of particular concern to parents as they seek to provide for their families finances, education, personal health and well-being. Key stats and facts: One in three families wouldn t last a month without financial support if they lost their main income. Nearly one in four (24%) have nothing saved. If the worst happened, only 46% have life insurance as a backup. 76% of parents have no plan for if they lost their main income due to ill health. Source: Aviva Protecting our Families report, March 2017 Additional sources: Increased renting: House of Commons report on Home Ownership and Renting, 2017 Fewer marriages: ONS report on Marriages in England & Wales: 2014, 2017 Aviva Family Finances Report, March 2017

4 What does the family with dependent children market look like? Average monthly net income: 2,709 Average monthly outgoings: 2,606 42% of parents worry at least once a month about the main breadwinner losing their job. 27% have experienced a loss of income due to ill health, serious illness or death. Source: Aviva Protecting our Families report, March 2017

5 Focusing on families Whether it s balancing tighter budgets or shifting priorities, families are not necessarily thinking about how they would cope if something were to happen. Our Protecting our Families report paints a very detailed picture in the UK and their attitude towards protection. Here are some of the key findings: Many families feel they won t ever need or want cover. Our analysis of the finances with dependent children shows 45% would last less than a month based on their current spending. The government is the most commonly trusted source of financial support (57%), followed by employers (50%). Did you know? According to our research, this many parents don t think they ll ever need or want cover: 40% 36% 30% Income Protection Critical Illness Life Insurance Source: Aviva Protecting our Families report, March 2017

6 How we can do more to support families We re dedicated to helping you provide cover that protects your clients when they need it most. Not only can our insights help you understand current opportunities in the market, we can also offer you tools and resources that could help you effectively communicate the issues to your clients. We ve brought together a compelling suite of protection solutions and benefits that offer more choice and flexibility than ever before, enabling you to provide tailored protection solutions for families. These include: Income Protection Our Income Protection+ is a long-term policy that pays out if your client suffers a loss of earnings due to illness or injury. It pays a proportion of their income to help support them financially whilst they are unable to work, for a fixed period of time. A range of extra benefits and support services are included as standard, as well as a choice of annual increase options. Current % of families with dependent children with Income Protection: 13% Life Insurance Our Life Insurance+ policy offers a choice of life cover or life and critical illness cover. Both include a range of benefits and terminal illness cover as standard. The option to upgrade both adult and child critical illness cover at an extra cost, and optional extras, mean Life Insurance+ can be tailored to a broad range of clients. Current % of families with dependent children with Life Insurance: 46% Critical Illness Our Critical Illness+ policy provides stand-alone critical illness cover, which pays out if your client is diagnosed with, or undergoes surgery for, a range of serious critical illnesses, as well as a number of more common, and sometimes less severe, conditions. It also includes valuable cover for their children as standard. Both adult and child cover also include the option of upgrading at an extra cost. Current % of families with dependent children with Critical Illness cover: 18% Source: Aviva Protecting our Families report, March 2017.

7 Starting the conversation Our research shows parents are unlikely to have plans in place to deal with the unexpected; 77% have no plan for coping with a job loss, 76% have no plan for being out of work due to ill health and 68% have no plan for coping with the death of themselves or their partner. By changing the way you discuss protection products in your communications, you can highlight the importance of cover and planning for the unexpected. Our downloadable Families Marketing Guide offers extensive tips and techniques for starting this conversation via a letter or . Here are just some of the tips you can find in our guide: Speak to the individual Addressing your clients and prospects by name makes your letters and s much more effective. Otherwise, they might assume it s spam and stop reading. Say it with statistics Try using relevant facts and figures to show just how common the risk of illness, death and injury are. Ask the question Rather than telling your clients about the risks of not being covered, why not ask them a question? You might want to ask them how they would pay their rent or mortgage if the main earner was too ill to work. Read it aloud When you re writing about delicate subjects, try reading your letter or back to yourself before you send it. It s a great way to check you re striking the right tone. You can download our Families Marketing Guide at aviva-for-advisers.co.uk

8 Price based on a quote for Critical Illness cover only. Cover up to 60,000 for a 25-year-term, healthy, non-smoking customer aged 33 years (correct as of 05/10/17). The price you will actually pay will be based on your personal circumstances. Aviva Life Services UK Limited. Registered in England No Aviva, Wellington Row, York Y090 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference number Is your family protected? Aviva s recent Protecting our families report found don t have the safety net of savings if the main earner wasn t working. As an example, a healthy 31-year-old could pay around Price based on a 6-month deferred payment for a healthy 31-year-old for Income Protection only. Providing a monthly benefit of 1,412 to an administrator on an annual salary of 29,000 (correct as of 05/10/17). The price you will actually pay will be based on your personal circumstances. Aviva Life Services UK Limited. Registered in England No Aviva, Wellington Row, York Y090 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference number Our research shows 26% of parents with dependent children have experienced a loss of income due to ill health, serious illness or death of a long-term partner. The typical family thinks their savings could sustain their current lifestyle for five months if the main income earner was unable to work. But what does the research show? Aviva s assessments of family finances show that would last less than a month, based on their current spending. The result: Young families overestimate how long their finances would last. How income protection can help protect you and your family financially. Income protection pays out if you suffer a loss of earnings due to illness or injury. It pays a proportion of your income while you are unable to work, or for a fixed period of time. There is no cash-in value at any time. Income protection can help towards replacing lost income when you are too unwell to work, making sure you can still afford the essentials, such as: Bills Rent Mortgage Talk to us today about the options. Source: Aviva Protecting our Families report, March AL /2017 Our research shows 26% of parents with dependent children have experienced a loss of income due to ill health, serious illness or death of a long-term partner. The typical family thinks their savings could sustain their current lifestyle for five months if the main income earner was unable to work. Aviva s assessments of family finances show that current spending. Is your family protected if the worst was to happen? Aviva s recent Protecting our 68% families of young report found families have no plan for dealing with the death of one of the parents. have nothing saved. As an example, a healthy 35-year-old non-smoker could pay around Price based on a quote for Aviva Life Insurance only. Cover up to 170,000 for a 25-year-term, healthy, non-smoking customer aged 35 years (correct as of 05/10/17). The price you will actually pay will be based on your personal circumstances. Aviva Life Services UK Limited. Registered in England No Aviva, Wellington Row, York Y090 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference number if you are diagnosed with a wide range of medical conditions, including serious illnesses, such as stroke, heart attack or certain types of cancer. The Critical Illness plan only pays out the full cover amount once, and it doesn t pay out on death. There is no cash-in value at any time. Source: Aviva Protecting our Families report, March AL /2017 Our research shows 26% of parents with dependent children have experienced a loss of income due to ill health, serious illness or death of a long-term partner. The typical family thinks their savings could sustain their current lifestyle for five months if the main income earner was unable to work. But what does the research show? Aviva s assessments of family finances show that would last less than a month, based on their current spending. The result: Young families overestimate how long their finances would last. How life insurance can help protect you and your family financially if you were to die during the policy term by paying out a cash lump sum. There is no cash-in value at any time. This money could help your family: Clear debts Cover everyday expenses Talk to us today about the options. Source: Aviva Protecting our Families report, March AL /2017 Retirement Investments Insurance Health For financial adviser use only. Not approved for use with customers. A quick guide to writing effective letters and s to your clients about critical illness, income protection and life insurance. Effective letters and s are short and concise, using simple language and avoiding financial jargon. It might be a good idea to break yours up into three clear sections, divided by subheadings for easy reading: 1) An introduction explaining why you re contacting the client 2) An explanation of your main message 3) The next steps what you d like your client to do and why, including how they can contact you. Here s an example of a letter to a client with a family, using some of the techniques mentioned in this guide. Handy tools to show your clients At you ll find a range of tools to use with your clients, including infographics and a quick online video. You could attach them to your s or use them to start the conversation in client meetings. Source: Aviva Protecting Our Families report, March (Based on families with dependent children). Addressing your clients by name Introducing yourself and the reason you re getting in touch Posing questions Using statistics to make your point (don t forget to say where the statistic came from at the bottom of the letter) Overcoming objections Using subheads to break up the text Clear next steps for your client Dear Mr Smith, At ABC Advisers we ve seen an increase in the number who don t have a plan for if they couldn t work, or if they or their partner died. Nobody likes to think about the worst happening, but we want to make sure you d get the support you need if it did. How would your family cope if you lost your main income? 1 in 5 parents who ve found themselves in this situation have been forced to downsize, move in with family or rent some even became homeless. That s why it s important to think about what you d do if something happened to you or your partner. For example, your wider family may be able to support you for a few weeks, but what would happen if you developed a long-term condition? We re here to chat through your options Simply give us a call on to make an appointment to find out more. We ll ask a few questions about your circumstances and it may be that a simple, affordable product like life, critical illness or income protection insurance is enough to give your family peace of mind. The right tools for the job We have a range of effective tools and resources you can draw upon to help start the conversation with families, including: Infographics We ve created three handy infographics to help you communicate the issues to your clients in a simple, digestible format. They also show just how affordable cover can be. Best of all, they re easy to share via . Video A short, shareable video could help your clients recognise their protection needs, prompting the right kind of conversation. Families Marketing Guide We all know it s important to have positive conversations with clients around protection. That s why our Families Marketing Guide offers invaluable guidance on how to kick-start difficult conversations about protection for families, including tips on how to write effective letters or s. Is your family protected against critical illness? Aviva s recent Protecting our families report found 24% don t have the safety net of savings if the main earner became unwell. As an example, a healthy 33-year-old non-smoker could pay around 24% a month a month The reality of family finances 45 The reality of family finances But what does the research show? 45 Living expenses would last less than a month, based on their The result: Young families overestimate how long their finances would last a month Critical illness cover can help protect you and your family financially Critical illness cover could help pay for: The reality of family finances 45 Rent Mortgage Living expenses Care costs Lifestyle adaptations Talk to us today about the options. Pay off the mortgage Many families feel they won t ever need or want cover It s time to start the conversation Structuring what you want to say

9 In summary A vast business opportunity The chance to help families and, in so doing, develop your customer database for ongoing advice opportunities Our Protecting our families report offers robust statistics to back up your advice Tools and resources to help you communicate issues effectively We offer a range of comprehensive products to help you protect families

10 For more information on protection for families, visit or speak to your usual Aviva contact. Retirement Investments Insurance Health Aviva Life Services UK Limited. Registered in England No Aviva, Wellington Row, York Y090 1WR Authorised and regulated by the Financial Conduct Authority. Firm Reference number AL /2017