When life changes overnight:

Life can change in an instant. A sudden diagnosis, a debilitating accident, or the progression of a chronic illness can turn a loved one into someone who needs round-the-clock care. In these moments, many individuals step into the role of full-time carer—often without warning, preparation, or financial support. 

For advisers, this is a critical moment to highlight the value of protection insurance. Life insurance, critical illness cover, and income protection are not just policies—they are lifelines. They provide stability when everything else feels uncertain.

The Hidden Financial Toll of Becoming a Carer 

In the UK, there are over 5.4 million unpaid carers¹, and that number is rising. Many of them are forced to reduce their working hours or leave employment altogether. The financial impact is immediate and long-lasting. 

According to Carers UK, over half (57%) of carers said they feel overwhelmed ‘often’ or ‘always’ and 37% feel overwhelmed ‘sometimes’ due to their caring responsibilities². The emotional toll is compounded by financial strain—especially when the carer was previously the primary earner. Carers who are struggling financially are struggling more with their mental health. Over half (56%) of carers struggling to make ends meet had bad or very bad mental health compared with 18% of carers who were not struggling financially.²

This is where protection insurance becomes essential.   

Life Insurance: Protecting the Future

Life insurance is often viewed as a policy that protects others in the event of death. But for carers, it can also be a tool for long-term financial planning. If a carer passes away unexpectedly, life insurance ensures that the person they were caring for—who may be vulnerable or dependent—has financial support in place. 

For example, a lump sum payout can be used to: 

• fund professional care services 
• modify a home for accessibility 
• cover ongoing living expenses.

This is especially important when the carer is also the legal guardian or financial provider for the person they care for.

Critical Illness Cover: A Safety Net for the Unexpected

Critical illness cover pays out a lump sum if the policyholder is diagnosed with a serious illness such as cancer, stroke, or multiple sclerosis. These are the very conditions that often lead individuals to become carers—or require care themselves. 

Critical illness cover can be used to pay for private treatment, adapt a home, or simply cover living costs during recovery . For someone who becomes a carer, this payout can provide the breathing room needed to adjust to a new reality. 

It’s also worth noting that Scottish Widows paid out on 91% of their critical illness claims in 2024, demonstrating that these policies are not just theoretical—they work when they’re needed most.

Income Protection: Replacing Lost Earnings

Perhaps the most overlooked but vital form of protection for carers is income protection. This insurance pays a monthly tax-free income if the policyholder is unable to work due to illness or injury. 

Why is this important for carers? 

Statutory Sick Pay in the UK is just £116.75 per week, and self-employed individuals are not eligible at all . That’s not enough to cover rent, let alone the additional costs of someone becoming a full time carer. Because many carers are forced to leave work or reduce hours significantly, an income protection policy can help to support the policyholder financially.

Income protection can replace 50% to 70% of gross monthly earnings, providing a stable income stream while the carer adjusts to their new role. This can prevent the need to dip into savings, remortgage a home, or take on debt.   

The Human Side of Protection

Imagine a 42-year-old woman who becomes the full-time carer for her husband after he suffers a stroke. She leaves her job to provide care, meaning they lose both of their incomes overnight. Without income protection, she’s forced to rely on savings and government support, which barely cover the basics. 

Now imagine the same scenario—but with an income protection and critical illness policy in place. Her husband receives a lump sum payout and then a monthly income, which they use to adapt their home and hire part-time care support. She’s able to continue working part-time, supported by the income protection policy that covers the rest of her lost earnings. 

The difference is not just financial—it’s emotional, psychological, and deeply human. 

In 2014, the Income Protection Task Force brought together people and providers across the protection industry to set up the 7 families charity which aimed to provide a tax free income for one year to seven people who have lost their income because of a serious or long-term illness or disability. 

Paul & Vicky Pickford were one of the families helped by the Income Protection Task Force, after he suffered a brain stem stroke while at work and Vicky became his carer.  Watch their story

What advisers can do

As an adviser, you are in a unique position to prepare clients for the unexpected.  

1. Start the Conversation Early
   Don’t wait for a crisis. Discuss protection insurance as part of every holistic financial plan. 
2. Tailor Policies to Life Stages
   Clients in their 30s and 40s may not see themselves as potential carers—but this is often when these responsibilities arise. 
3. Highlight Real-World Scenarios
   Use case studies and statistics to show how these policies work in practice. 
4. Review Regularly
   Life changes quickly. Encourage clients to review their cover annually, especially after major life events.

Planning for the unplanned

Becoming a full-time carer is one of the most selfless and challenging roles a person can take on. It often comes with no warning and few resources. But with the right protection in place, it doesn’t have to come with financial devastation. 

Life insurance, critical illness cover, and income protection are not just policies—they are acts of foresight, compassion, and resilience. Helping clients put these protections in place is one of the most impactful things you can do.

Sources:

¹House of Commons library, 2025 - Who provides informal care? - House of Commons Library

²Carers UK, February 2025 - State of Caring and Mental Health (PDF, 5MB)