Rethinking what it means to safeguard your livelihood – income protection beyond the payout
This article first appeared in Cover Magazine in September 2025.
Income protection has traditionally served as a key component of a client’s financial safety net, ensuring that bills are paid in the event of serious illness or injury. In recent years, its role has transformed to include support for recovery and assistance with returning to work.
Anyone who has experienced serious illness or injury knows recovery is rarely simple. Rehabilitation is often physical, emotional and logistical. Returning to work may require new routines, lifestyle adjustments or even shifts in mindset and while financial security is vital, it is only one part of the story.
The message is clear; the best outcome is not a payout but avoiding absence from work in the first place.
The landscape of income protection is changing to reflect society’s evolving expectations of what ‘security’ means. Modern workers face new challenges: gig economy roles, self-employment, remote working arrangements, and careers that are less linear and more susceptible to disruption. The rise of mental health concerns, long-term chronic illnesses and lifestyle-related diseases has shifted the risk landscape.
The focus is shifting toward prevention and early intervention, with insurers investing in resources to help policyholders remain healthy and working. This includes health apps, online wellbeing resources, and, in particular, valued human support services.
Importantly, this approach offers advantages for all stakeholders. Individuals regain their independence, employers retain skilled workers, while insurers lower their overall risk exposure and, in turn, minimising the cost of cover.
Someone returning to work after a serious illness might need guidance on phased returns, advice on workplace adjustments or help navigating their employment rights. Without this support, the risk of relapse or prolonged absence increases.
This is where holistic services can make a meaningful difference. Take, for example, specialist nurse-led models such as those provided by RedArc. Clients are matched with a dedicated nurse who offers long-term, tailored support and coordinating therapies, providing second medical opinions and offering emotional reassurance throughout recovery.
The real impact often comes from how these services join the dots. A stroke survivor might access physiotherapy and counselling while also receiving advice on employment law and workplace adjustments. A cancer patient might be supported through treatment while also gaining help with nutrition, lifestyle changes or return-to-work planning. The integration of clinical and practical support makes recovery more sustainable. This is how advisers should be positioning the value of IP – as beyond the payout.
An area of growing importance is mental health. Claims relating to stress, anxiety and depression are increasing and recovery here is rarely linear. Time off work may ease immediate pressure but without tailored interventions the path back to employment can lead to chronic absence. By offering support long before a formal claim is made, income protection providers demonstrate their commitment to genuine wellbeing.
Holistic support services are well placed to bridge this gap. Nurses and specialists can identify early signs of emotional distress, refer clients to appropriate counselling or digital platforms and provide continuity of care. This proactive approach not only helps clients recover but also builds resilience, reducing the likelihood of relapse and supporting longer-term wellbeing.
Royal London claims data highlights musculoskeletal issues, cancer and mental health as the most common reasons for absence – precisely the areas where holistic support can add real value.
For advisers, this shift reframes the conversation. No longer is income protection simply about how much a client will receive if they’re unable to work. It’s about what kind of journey they’ll experience while recovering and how likely they are to return to the life they had before.
As the market grows, clients increasingly expect value beyond the policy document. The question will move from “will I get paid if I can’t work?” to “how will I be supported to stay well, recover, and return to the life I value?”. They want the reassurance that comes not just from the promise of a payout but from knowing they are not alone, whatever the future holds.
As the protection industry continues to evolve, the integration of health and wellbeing services into core products is likely to become the norm. Whether through nurse-led models, digital health platforms, or vocational rehabilitation programmes, the focus is shifting from payouts to outcomes.
Ultimately, this is a reminder that protection is about more than policies, it’s about people. A financial payout can keep the bills paid but a holistic support package can help restore lives, rebuild confidence and bring people back to work with dignity and purpose.
This evolution allows advisers to engage more deeply with clients and points to a future where income protection is proactive and supportive. Its value will be seen not just in financial terms, but in the lives it sustains and futures it shapes.
