Retirement Investments Insurance Health Protecting Families Getting the conversation started For financial adviser use only. Not approved for use with customers.
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 report (March 2017) 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 of families 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.
Redefining families The way we live has changed in recent decades, with more people privately 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, the unknowns surrounding Brexit 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 (relating to families with dependent children): 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% of families 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. Contains Parliamentary information licensed under the Open Parliament Licence v3.0. Fewer marriages: ONS report on Marriages in England & Wales: 2015, 2018. Contains public sector information licensed under the Open Government Licence v3.0.
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% of families have experienced a loss of income due to ill health, serious illness or death. Source: Aviva Protecting our Families report, March 2017
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 of families 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 of families 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
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.
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 email. 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 emails 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 email 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 *Aviva Protecting our Families report, March 2017.
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 email. 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 emails.
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
For more information on protection for families, visit www.aviva-for-advisers.co.uk or speak to your usual Aviva contact. Retirement Investments Insurance Health Aviva Life Services UK Limited. Registered in England No 2403746. Aviva, Wellington Row, York Y090 1WR Authorised and regulated by the Financial Conduct Authority. Firm Reference number 145452. AL99120 09/2018