Protecting FamiliesGetting the conversation started

For financial adviser use only. Not approved for use with customers.

Retirement Investments Insurance Health

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At Aviva, we’re constantly monitoring the protection market, looking for gaps and uncovering opportunities that you could benefit from.

In March 2017 our ‘Protecting our Families’ report revealed some eye-opening facts and statistics about families and the fundamental ways in which their lives and habits had 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 uncovered, so you can highlight protection needs with your clients. Needs that they may not have thought about themselves.

For us today in 2020, the uncertainty and unexpected is likely to be in the forefront of families’ minds across the country. This may lead to new opportunities to protect families in the future.

Unearthing opportunities in an ever-changing landscape

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Redefining familiesThe 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.

If these families are less likely to buy homes or get married this may mean they could miss traditional milestones which would prompt them to consider essential cover.

And if you look at the wider picture, the uncertainty and the unexpected are everyday realities for us all today. Of course, this is of particular concern to parents as they seek to provide for their families’ finances, education, personal health and well-being.

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: 2016, (published in 2019). Contains public sector information licensed under the Open Government Licence v3.0.

Key stats and facts (relating to families with dependent children):

One in three families wouldn’t have lasted a

month without financial support if they lost their

main income.

Nearly one in four (24%)had nothing

saved.

76% of parents had no plan for if they lost their

main income due to ill health.

If the worst happened, only 46%

of families had life insurance as a backup.

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What did the family with dependent children market look like?

Average monthly net income was: £2,709Average monthly outgoings were: £2,606

27% of families had experienced a loss of income due to ill health, serious illness or death.

42% of parents worried at least once a month about the main breadwinner losing their job.

Source: Aviva Protecting our Families report, March 2017

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Focusing on families

Whether it’s balancing tighter budgets or shifting priorities, families were not necessarily thinking about how they would cope if something were to happen.

In March 2017, ‘Protecting our Families’ report painted a very detailed picture of families in the UK and their attitude towards protection. Here were some of the key findings:

• Many families felt they wouldn’t ever need or want cover.

• Our analysis of the finances of families with dependent children showed 45% would last less than a month based on their current spending.

• The government was the most commonly trusted source of financial support (57%), followed by employers (50%).

Did you know?According to our research, this many parents didn’t think they’d ever need or want cover:

Income Protection Critical Illness Life Insurance

40% 30%36%

Source: Aviva Protecting our Families report, March 2017

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How we can do more to support families

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. A range of extra benefits and support

services are included as standard, as well as a choice of annual increase options.

% of families with dependent children with Income

Protection in 2017: 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.

% of families with dependent children with Life

Insurance in 2017: 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.

% of families with dependent children with Critical Illness

cover in 2017: 18%

Source: Aviva Protecting our Families report, March 2017.

We’re dedicated to helping you provide cover that protects your clients when they need it most.

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:

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Starting the conversation

Our research* showed parents were unlikely to have plans in place to deal with the unexpected; 77% had no plan for coping with a job loss, 76% had no plan for being out of work due to ill health and 68% had 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:

You can download our Families Marketing Guide at aviva-for-advisers.co.uk

*Aviva Protecting our Families report, March 2017.

Speak to the individualAddressing your clients and prospects by name makes your letters and emails much more effective. Otherwise, they might assume it’s spam and stop reading.

Read it aloudWhen 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.

Ask the questionRather 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.

Say it with statisticsTry using relevant facts and figures to show just how common the risk of illness, death and injury are.

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In summary

A vast business opportunity

The chance to help families and, in so doing, develop your customer database for ongoing advice opportunities

We offer a range of comprehensive products to help you protect families

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Aviva Life & Pensions UK Limited. Registered in England No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.

AL99120 05/2020

For more information on protection for families, speak to your usual Aviva contact.

Retirement Investments Insurance Health

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