With increasing numbers of self-employed and gig workers and with clients facing unique financial pressures, the protection industry must move beyond traditional income protection. We explore how simplified, innovative products are closing the gap and what advisers need to know to stay relevant.
Income protection has long been positioned as an essential financial safeguard, yet uptake remains stubbornly low. According to recent Mintel data (March 2025), just 8% of UK adults have an income protection policy. For younger demographics, the numbers are even lower, and the barriers are growing.
63% of under-35s now view income protection as more appealing due to the cost-of-living crisis. But there’s a disconnect: 24% of 18 to 34-year-olds don’t understand what income protection is, and 13% don’t know how to go about arranging it. This signals a clear and urgent need for the industry to change both in how we communicate protection and how we design it.
What’s happening with traditional income protection?
For all its merits, traditional income protection hasn’t kept pace with today’s lifestyles. Lengthy underwriting processes, jargon-filled policy documents, and a focus on long-term sickness often make it seem irrelevant or inaccessible to many younger people. When juggling freelance work, side hustles, childcare, and tight budgets, the average 30-year-old may not see how long-term sick pay coverage fits their life or their wallet.
More than that, the reality of risk is different than it used to be. Our Bruised Britain research shows that 29% of adults, rising to 37% among under-35s, have experienced an accident in the last three years. These aren’t just minor incidents. One in five had to change their daily routines, and 15% now live with long-term effects, such as chronic pain or reduced mobility. Bridging the gap with simpler, innovative products.
The gap between need and action creates a clear opportunity for advisers to lead meaningful conversations. At National Friendly, we’ve developed non-traditional income protection options, like Accident Only Income Protection or Friendly Shield, that are quick to apply for with no underwriting, budget-friendly, and simple to understand, especially for occupations that typically struggle to access traditional cover.
Think of these as a stepping stone, not a replacement for long-term protection. These products can help advisers say “yes” more often, particularly to first-time buyers or younger clients who want to start small but meaningful. These moments of financial transition are an ideal time to introduce flexible options that match real-life risks.
Value beyond payout
Another critical shift: today’s clients want more than just a payout. They want support, simplicity, and reassurance. That’s why we include Friendly GP+, our 24/7 virtual GP service, as a free add-on with our protection plans. Clients can speak to a doctor any time and get private prescriptions, open referrals, counselling, physio, and even money guidance, and cover is available for family too.
This kind of wraparound support brings real value into everyday life and fosters the trust needed to build protection journeys that evolve over time. It’s also a practical way advisers can show how protection helps beyond just emergencies and suits a “prevention rather than cure” approach.
A new approach to advice
We’re entering a time where good advice means personalising for lifestyle, not just income. Younger clients need empathy, not just financial modelling. They want cover that reflects the unpredictability of gig work, solo parenting, or starting a business, not just a 9-to-5 salary.
By leading with accessible options and building from there, advisers can strengthen trust, increase take-up, and future-proof their client relationships. It’s also fully aligned with the Consumer Duty, helping clients to make informed, needs-based decisions in a transparent and supportive way.
The protection industry doesn’t need to reinvent itself, but it does need to evolve. That means listening to the next generation, designing for their real needs, and supporting advisers with tools that genuinely connect.
