Protecting the portfolio

When helping clients build wealth, we often focus on growth – investments, pensions, tax efficiency. But one area often gets overlooked, and it could seriously derail even the best-laid financial plan: what happens if a client gets seriously ill or is unable to work for a long period of time?

Many high-earning professionals or business owners assume, “I’ve got savings. I’ll be fine.” But a serious illness or being unable to work long term, can significantly impact financial plans, eating into capital, delaying retirement, or threatening a business. That’s why critical illness cover, and income protection are tools in every adviser toolkit.

Why it matters

Let’s be honest, wealthy clients often think they don’t need insurance. They may have enough to cover themselves for short-term setbacks. But what if they’re off work for a year or more? Or need specialist treatment abroad? Or they’re forced to change their future plans because they can’t work?

The impact often goes beyond potential hospital bills. In many cases, it’s about replacing income, protecting long-term investments, avoiding selling assets, and keeping their family and future secure. Protection acts as a safety net that keeps the bigger plan on track.

The real risk

What happens if you’re unable to work due to illness or injury?

All these outgoings need to be protected.

What can critical illness cover do?

Critical illness cover pays out a one-off lump sum if the client is diagnosed with a critical illness like cancer, heart attack, or stroke (amongst others). For wealthy clients, it’s not about covering basic expenses. It’s about giving them options.

With a payout in hand, they could:

What Income Protection does (that critical illness doesn’t)

Critical illness policies cover specific diagnoses, but what if the client suffers an injury or illness that’s not classified as “critical” yet still prevents them from working? That’s where Income Protection comes in.

It pays a regular monthly income if the client can’t work due to illness or injury, sometimes for years. It’s particularly valuable for:

Even clients with employer benefits may not be fully protected. Some group income protection plans only last 2 or 5 years and may only cover a percentage of basic salary – leaving bonuses, commissions, and dividends exposed.

Why is it relevant?

Some clients view protection as something only for those living paycheck to paycheck. It’s important to reframe that around what matters most to them: control, flexibility, and peace of mind. Here’s how:

Nobody wants to dwell on worst-case scenarios. But we’re not talking about disaster planning – we’re talking about smart, forward-thinking advice.

Critical illness cover and income protection aren’t about scaring clients, they’re about giving them the freedom to focus on recovery knowing their finances are secure. If your role is to protect and grow wealth, then protection is essential.

How can Guardian help?

Our Critical Illness Protection has definitions designed to pay. We focus on providing the best possible cover for the most common illnesses. We aim to make our definitions clearer and more all-encompassing than the rest of the market. And, in many cases, the diagnosis from a UK Consultant is all we need to pay out.

Plus, our cover upgrade promise means that if we improve our definitions in the future, existing policyholders get those enhancements too. Our biggest cover upgrade yet happened recently. Find out more here.

And our Income Protection is packed full of great features too. We offer a choice of full-term or 2-year payment period and a wide range of deferred periods, so it can be tailored to fit situations and budgets.

Our Income Protection has an own job definition, that pays out if illness or injury prevents your client from doing their actual job, not just their occupation. It covers the specific duties of their current role and offers clarity at point of claim as we focus on their contribution, not their occupation category.

And, Premium Waiver comes as standard with a 28-day deferred period, regardless of your client’s deferred period, even if they’ve not lost any income yet.

Not an either-or

But your client doesn’t have to choose between either Critical Illness Protection or Income Protection. Many clients benefit from a blended approach.

And with our flexible Protection Menu, you can mix and match our covers to build a solution tailored to each client’s needs.

Find out more here.