Income Protection: Gender & Financial Vulnerability
In this extract from our digital Insight magazine in August, we explore gender and financial vulnerability in the current Income Protection market. In a market where affordability pressures, interest rate uncertainty and household budgeting dominate the headlines, Income Protection (IP) remains one of the most underutilised tools in an adviser’s toolkit. Yet, it could be the lifeline that prevents a financial crisis for many families.
Recent research from LifeSearch and HomeOwners Alliance, surveying 500 mortgage holders, has shed new light on the gender gap in financial vulnerability and why it’s time for advisers to approach the protection conversation with fresh eyes.
Women Face Greater Financial Risk
The research revealed that women are more vulnerable to income shocks but are less likely to have income protection in place.
- 14% of women said they would fall behind on their mortgage payments immediately if their income stopped due to illness or injury, compared to just 6% of men
- After two months, that figure jumps to 27% of women, again almost double the 14% of men
- At the six-month mark, over half of women (51%) said they’d struggle with their mortgage, versus 39% of men
Women were more likely to resort to temporary or unsustainable measures to stay afloat. Nearly a third said they’d request a mortgage holiday, almost a quarter would look for extra work, and 22% would borrow from friends or family.
These findings highlight how short-term solutions often mask long-term financial risk, especially for women juggling family care responsibilities, high living costs, and irregular earnings from part-time work or career breaks.
The Protection Gap
Despite this clear risk, protection levels remain low, especially amongst women:
- Fewer than half of women surveyed had life insurance
- Only 18% had critical illness cover
- Just 13% had income protection in place
The report suggests this isn’t necessarily due to lack of interest but rather a lack of awareness, confidence, and support. Many clients, particularly women with less predictable incomes, may not realise income protection is flexible and accessible, even if they’re not the main household earner.
This creates a real opportunity for advisers to challenge assumptions, guide better conversations, and provide the support clients truly need.
Rethinking The Protection Conversation
- Avoid Gender Assumptions
Protection needs aren’t defined by gender but by income risk, and it’s a mistake to assume only the main breadwinner requires income protection. The loss of a secondary income can be just as disruptive, particularly when families rely on two incomes to cover the basics. Make sure both earners understand the value of cover.
- Highlight the Impact of Lost Income
Even clients with part-time jobs or irregular earnings should be part of the conversation. Many women work reduced hours due to caring responsibilities or career transitions. But if their income helps cover essentials like childcare, food, or bills, losing it can put the entire household at risk.
- Offer Flexible Solutions
Clients may not know that income protection can be tailored. Highlight shorter deferred periods, budget-friendly plans, or products suited to self-employed or part-time earners. This flexibility can make all the difference in affordability and uptake.
- Real-Life Examples to Build Confidence
Nothing makes the value of IP clearer than a real story. Claims case studies, like those highlighted in the IPTF 7 Claims Stories, are powerful tools to show clients what happens when things go wrong and how IP helps them stay financially stable. Whether it’s a temporary injury or a longer-term illness, these stories resonate and help break down the “it won’t happen to me” mindset.
Income Protection Action Week
This September, Income Protection Action Week returns with five days of focused webinar content and support for advisers:
- Monday 22nd: Preparing to sell more IP
- Tuesday 23rd: The business of protecting income
- Wednesday 24th: Working smarter as an adviser
- Thursday 25th: After the sale: ongoing relationship
- Friday 26th: IP: one size doesn’t fit all
It’s the perfect opportunity to revisit how you approach income protection conversations, taking practical steps to drive more meaningful, tailored discussions with your clients.
Support at Mortgage Intelligence
At Mortgage Intelligence, we know protection advice is about more than just ticking a box. It’s about helping your clients build real resilience, especially during uncertain times. Whether you’re new to IP or looking to grow your protection business, we’re here to support you every step of the way.
To access our bi-monthly digital Insight magazine, for updates on industry trends, market insights, practical tips to develop your business and more, join Mortgage Intelligence.
