Income protection (IP) can really come into its own when advising high net worth individuals who believe their business is their pension.
This is according to Victor Sacks, owner and director at independent financial adviser VS Associates, who was taking part in a panel debate on the third day of the Income Protection Taskforce’s Income Protection Awareness Week.
Responding to a question about which sorts of individuals IP cover would fit, Sacks (pictured) explained that a person in their 60s receiving a regular decent pension income was unlikely to be well suited.
However, he higlighted that IP can work well for people in the corporate sector who run their own business and believe that the sale of their business will pay for their retirement.
Sacks urged advisers to ask these individuals what would happen if they found themselves unable to carry out the “material and substantial” duties associated with their job such as not being able to use a laptop to run their business.
“Can you do the material and substantial duties of your job without being able to use a laptop? What does Coronavirus do to that individual?” Sacks asked.
“I think it’s worth a conversation and a point of discussion,” he continued.
“There are some very good situations where some gentle discussion, you don’t need to open your briefcase and throw everything at them, can work well.
“Some gentle calm discussion, whether you’re a financial planner or a financial adviser… have a listen to what’s being said but throw back exactly what they say to you.”
