Navigating the Future: The legacy of COVID-19 on protection and its lasting impact
Vikki Harrison
Marketing Manager
Can you believe it's already been five years since the first COVID-19 lockdown on March 23, 2020? It feels like just yesterday we were figuring out how to stay safe, stay home, and become quiz masters on Zoom.
But here we are, five years later, and it's time to reflect on the lasting impacts of the pandemic on the protection landscape. What significant changes have we seen in our habits, and what new health concerns are we navigating? Supporting clients in building financial resilience remains a crucial role for both advisers and providers. However, what challenges do we still face, and what new ones might arise from two years of lockdowns?
The Era of Uncertainty
Since the pandemic, uncertainty has been the prevailing theme. Even with the lifting of COVID restrictions, we've continued to face challenges that have sparked numerous changes across various sectors. The war in Ukraine has not only caused a humanitarian crisis but also significantly impacted food, energy, and commodity prices. Rising energy costs, inflation, and the cost-of-living crisis have led to the biggest squeeze on living standards in a generation.
Shifting employee expectations
Many workers now expect flexible or hybrid working conditions as a standard when job hunting. Post-COVID, employees increasingly expect employers to take on a larger responsibility for health and wellbeing. According to the 2022 Vitality report, 82% of men and women expected more employer support post-pandemic1.
The pandemic, coupled with the cost-of-living crisis, saw a spike in workers seeking extra cash. The number of workers with second jobs rose and peaked in 2022, leading to the rise of the gig economy. Deliveroo now has 50,000 self-employed riders in the UK, and Uber Eats has over 100,000 drivers2. This raises concerns about the lack of protection for these new incomes.
The Adviser angle:
The UK boasts a large and diverse business landscape. The protection insurance needs of these businesses and their owners are as varied as the companies themselves. Income Protection insurance is crucial, both for the owner protecting themself if they fall ill and become unable to work, and for the business to protect itself against the temporary loss of a key person.
For many small businesses, Group Income Protection may not be affordable or viable if there are too few employees. An alternative solution is Key Person Insurance, which provides financial support to businesses if the insured person is unable to work due to death or illness. Every employee contributes to the success of a business, but if the loss of one key person would significantly impact the business, this coverage is worth considering.
Corporate lending should also consider business protection policies to protect key persons and ensure businesses are not left with debt. UK business lending has increased significantly since 2016, where it stands at £488.1 billion in 2024, the second-highest rate of lending since 2011 (£495.5 billion)3.
Added-Value Services
Some business protection policies include rehabilitation tools, added-value services, and further support options in their group policies, such as:
- Virtual GP
- Mental Health Support
- Physiotherapy
- Back to Work Support
- Occupational Therapies
These interventions aim to minimise sick days by helping staff return to full health and fitness more quickly.
People Are Taking More Debt into Retirement
The ongoing cost-of-living crisis has led to a growing trend of people taking mortgages beyond retirement age. This debt can significantly impact retirement plans and financial security, leading to increased stress and reduced income during retirement.
Advisers spend a lot of time advising our clients on how to maximise their post-retirement income, and rightly so. It's one of the most common goals for clients: "How much do I need to save to ensure a comfortable retirement?" However, that retirement income is only achieved if every monthly contribution is made over the years, so it's not guaranteed. How much would it cost to provide your clients with a guaranteed pre-retirement income?
Essentially, you need to save significantly more to fund your retirement than you do to fund your income if you can't work due to an accident or illness. Income protection cover is guaranteed from the moment the plan goes on risk and the first premium is paid.
The Adviser angle:
The rise in gig economy workers and those with self-employed second jobs, as well as self-employed workers in general, highlights the need for some form of protection—akin to the benefits they miss out on from not being an employee. However, many do not have the time to investigate or organize protection. Recent research conducted by Scottish Widows and YouGov found that 63% of self-employed people have no form of protection4.
Protection products can help these workers feel more secure and protected. With changing priorities and mindsets, some clients may be more open to income protection and what it can do for them. The ability to personalise the product by selecting a longer deferred period or shorter payout period may also contribute to income protection's growing popularity.
Married vs. Single: navigating financial complexities
Life doesn’t follow a straight line, and we live in a world where the financial complexities of individuals and families are substantial. With endless moving parts, varying aspirations, and fluctuating financial headroom, the 'one size fits all' approach to financial advice has rightly been consigned to history. However, clear themes still emerge across different demographic groups.
Something as seemingly unassuming as marital status can be a key factor in financial resilience and the types of financial products that are most beneficial for achieving financial goals. Understanding these factors enables advisers to ask the right questions and ensure that likely challenges and opportunities are properly identified and addressed.
The 'Singles Tax'
The 'singles tax' is very real. Grocery costs, rent, and even holidays are all more expensive per capita for those who tick the 'single' box. Additionally, those who are married or living together are more likely to hold savings, investments, and pension products than those who are single or have been previously married.
The Adviser angle:
Whether clients are married or single will determine their particular needs for and attitudes towards protection. It's too simplistic to think that married clients prioritise protecting what they have built for their family and loved ones, while single clients are more carefree and enjoy the lack of additional responsibilities.
Financial challenges are not restricted to those with partners. Just because someone falls into the 'single' bracket doesn't mean they are without dependents—whether that's vulnerable parents, siblings, children, or grandchildren. Without the financial support of a partner, financial resilience may be lower, making it harder to navigate life’s ups and downs, such as long-term illness, injury, or saving for a home and retirement. The reality is that living day-to-day is just more expensive for singles, placing a greater burden on them to be proactive in their financial decision-making.
It's important to ensure that any money available for saving is being put to work, but this can take time. For more immediate peace of mind, there are a host of protection products such as income protection and critical illness cover that might prove invaluable. These can offer much-needed financial support in case illness or injury gets in the way of earning an income. Customers can safeguard their lifestyle while continuing to enjoy what they’ve earned as they get back on track.
Health & Mental health
The COVID-19 pandemic and subsequent lockdowns have left a significant and lasting mark on both physical and mental health. The World Health Organization reported a staggering 25% increase in anxiety and depression worldwide5.
Repeated lockdowns led to elevated mental health symptoms, particularly among women, people working from home, those with pre-existing health conditions, individuals aged 30-45, and those experiencing loneliness6.
The mental health impact was not uniform; people with better social links and healthier behaviours adapted more positively, while those less well-off experienced greater negative effects. Lockdowns disrupted regular physical activities, leading to decreased exercise and poorer dietary habits for many. Increased alcohol consumption and other unhealthy behaviours were also reported during lockdown periods7.
The Adviser angle:
From preventative support to quick and easy access to treatment when needed, advisers are ideally positioned to ensure clients’ mental health is fully covered. Mental illness remains the most common condition on insurance applications and has been for over a decade. It’s well known that approximately one in four people in the UK will experience a mental health condition each year*. However, this statistic mainly reflects diagnosed conditions, suggesting the actual number could be higher when including undiagnosed cases.
Attitudes towards mental health have shifted dramatically. As times have changed, the industry has adapted with enhancements in underwriting philosophies to ensure more people with mental health conditions can access protection policies. In fact, most people with mental health conditions can obtain coverage, often on standard terms. Depression, anxiety, and stress are common in everyday life, but people experience them to varying degrees. Underwriting data from Scottish Widows indicates these conditions constitute the majority of mental health disclosures on applications.
Many clients believe that disclosing a mental health condition will prevent them from obtaining insurance coverage. In fact, the majority of people who disclose a mental health condition will still be able to get cover and for most of these they will get standard rates. What’s more some providers, like Scottish Widows, will never decline a policy for mental health without it being reviewed by a human underwriter rather than AI.
Advisers can support these clients with creating a financial safety net removing potential money worries.
The impacts of 2 years of lockdowns will no doubt still be emerging for some time to come but there is a role for protection products in helping clients increase their financial resilience, health and wellbeing. With more people closer to financial vulnerability, tighter household budgets and less employee benefits – protection has arguably never been more important.
Sources:
1Vitality, 2022 - https://www.vitality.co.uk/business/healthy-hybrid-report/
2 Deliveroo, 2025 - https://deliveroo.co.uk/faq
3Money.co.uk - 50+ UK Business Loan Statistics 2024 | money.co.uk | money.co.uk
4Scottish Widows & YouGov data, Jan 2025
5WHO, 2022 - COVID-19 pandemic triggers 25% increase in prevalence of anxiety and depression worldwide
6Cambridge university press, 2025 - The mental health impact of repeated COVID-19 enforced lockdowns in England: evidence from the UK Household Longitudinal Study | BJPsych Open | Cambridge Core
7University of East Anglia, 2022 - Major study reveals the lasting impact of covid lockdowns | UEA