Income Protection, and the safety net it provides for those unable to work due to ill health or injury, is increasingly recognised as fundamental in financial planning. Yet, when it comes to Accident Only Income Protection, it’s sometimes met with scepticism.
“Is this even a real product?”
As a specialist provider committed to helping customers access affordable protection, we recognise accident only income protection as not only a legitimate product but a vital stepping stone for those who would otherwise remain entirely unprotected.
Accident only income protection does ‘exactly what it says on the tin’: financial support if you are unable to work following an accident. Unlike income protection policies, it doesn’t cover absence due to ill health. That limitation is openly communicated and doesn’t make it an ‘inferior’ product.
Our ‘Bruised Britain’ consumer study found nearly a third (29%) of adults have experienced an accident in the last three years. Of those, over half (57%) had to take unplanned annual leave. Accident-related concern is especially apparent amongst those in high-risk occupations, such as construction, transport, and manufacturing.
“We view accident-only products as a gateway, not a final destination.”
Accident only income protection gets customers (especially those with pre-existing conditions) thinking about financial planning. For many, traditional income protection plans are unaffordable or feel out of reach. This is especially true for the self-employed, young professionals, and manual workers.
Our research found that those aged 35 or younger are more likely to take out accident only income protection than any other age group, with 51% having cover in place to protect their income. This compares to 28% of those aged 35-54 years old and 14% for those aged 55 or older.
At the moment, price sensitivity is high, and underwriting can be challenging for those with pre-existing conditions. Accident only income protection is more accessible and allows for significantly lower premiums.
In other words, accident-only protection isn’t about cutting corners. It’s about providing a practical, immediate solution for people who might otherwise fall through the cracks.
“Accident only income protection isn’t just real; it’s responsible.”
Regulators have rightly urged providers to serve diverse customer needs, and accident-only products are included in that mandate. We see it as part of our mission at National Friendly to democratise protection.
We’re not suggesting that accident only income protection is a substitute for income protection. It isn’t. But that doesn’t mean it has no value. Just as Critical Illness Cover (CIC), Term Life Insurance, and budget dental plans serve a purpose, so too does this product.
The question shouldn’t be whether accident only income protection is a real product; rather, is accident only income protection suitable, accessible, and helpful for the people who need it?
"Accident only protection isn’t about cutting corners. It's about providing a practical, immediate solution for people who might otherwise fall through the cracks."
