The safety net most clients assume exists simply does not – and brokers who stay silent are taking a serious risk
The assumption that employment offers a reliable financial cushion is one that brokers are increasingly having to challenge.
Where income protection was once associated almost exclusively with the self-employed, the reality for most workers in the private sector is far more precarious, and one Denni Tyson (pictured top), founder of DT Financial, believes the industry can no longer afford to overlook.
"No one is coming to save you," Tyson told Mortgage Introducer. "If something happens, we are in America mode. No one is coming to save your house. The bank are not going to say, yeah, sure, just leave. It doesn’t work like that."
Why income protection is driving the biggest shift
Across Tyson's client base, income protection has become the product generating the most unprompted enquiries. He attributes this to a growing awareness – accelerated since 2020 – that employer sick pay is far thinner than most workers assume.
"My wife works in the NHS, and she gets six months full pay, six months half pay," he said. "That's very rare to find in the private sector."
He described one client, who changed employer and assumed her benefits would transfer. When Tyson checked, she had four weeks of full sick pay before dropping to statutory sick pay – currently £118.75 per week as set by the UK government for 2025/26 – a figure he said brought the conversation into sharp focus. "She was a very senior person who earned well in excess of six figures a year," he said. "And she sort of looked at me and went, oh."
Royal London's 2025 claims data shows income protection remains the product with the highest need and lowest take-up across the UK market – a gap that Tyson says brokers are uniquely placed to close at the point of mortgage advice. The Association of British Insurers reported that UK insurers paid more than £8 billion in life insurance, critical illness, and income protection claims in 2024, yet individual income protection continues to account for a fraction of overall protection take-up.
Tyson is also careful to explain the mechanics clients most often miss. For self-employed customers in particular, he stresses that income protection policies must be updated as earnings grow. "If you put year one at £40,000 per year, you get 65% of that," he said. "If you then earn £55,000 and don't tell them and make a claim, they'll pay you 65% of £40,000 rather than 65% of £55,000."
What the FCA expects – and whether it is enough
Tyson's approach to the Financial Conduct Authority's (FCA) expectation that protection conversations are evidenced is straightforward, requiring clients who decline cover to sign a waiver.
"If you don't take anything, I will hound you for that waiver," he said. "I am not having anything come behind me."
But he believes the regulatory framework around protection advice needs to go further. The broader protection advice conversation among brokers has intensified this year, with growing pressure on the industry to demonstrate that clients have been properly informed, not simply handed documentation. The FCA's Consumer Duty framework places clear obligations on firms to evidence good outcomes for clients, including those who decline protection products.
"I think there needs to be more stringency in who can actually issue the advice," Tyson said. "I've seen things and think, what on earth, why, and then I sort of work it out and know why they’ve done that. Some people take really rubbish income protection, and you think, what is the point in doing that? If you’re going to do it, do it properly."
He also raised concerns about loaded premiums and advisers tied to single providers, which he said can produce outcomes that do not serve the client's best interests.
The case for doing it properly – and once
Tyson's philosophy on protection is deliberate simplicity. He tells clients he gives them the "Champions League standard" of cover and lets them choose whether to take it, but he does not let the conversation pass without making the full case.
"I say, if you pass away, that's what you get. If you get unwell, that's what you get. If you go off sick, that's what you get. People appreciate that because it isn't the easiest thing to read about."
On critical illness, he is unequivocal: "I don't tell anyone to get the bog standard basic one. Never. Just get the one that pays for everything. It's pointless for the sake of a couple of quid."
Tyson is also direct about the risk of churning. He advises clients that protection should be set up once and reviewed only when circumstances genuinely change, warning that some advisers use mortgage renewals as a trigger to replace policies unnecessarily. Protection is an increasing priority for advisers looking to diversify their revenue, but he argues that the motivation must be client outcome, not commission structure.
"You do this once," he said. "You don't really change it."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
