How we calculate your risk

Our Risk Reality calculator estimates the likelihood of certain events that could financially impact you and your family. As people age, the chances of being unable to work due to illness or injury, experiencing a serious illness, and death naturally increase, which is reflected in the results.

Understanding the risk to you and your family

Calculation method

We use various statistics to estimate the chances of these events occurring. While our calculations provide a general idea, they don't account for all of the factors that could affect these results, such as your health or occupation, and should be used as a guide.

Viewing results

You can view the risk for yourself, your partner, or the combined risk for the both of you. Additionally, if you have or plan to have children, you can see statistics on commonly diagnosed conditions in children, which can help you decide whether to include this cover in your policy.

By using this calculator, you can gain a better understanding of the financial risks you may face and take appropriate steps to protect yourself and your family.

However, we recommend discussing your results and individual needs with a financial adviser to understand what they mean and how you can protect your financial future and that of your family.

How we assess the risk

Inability to work for four weeks or more

These probabilities are based on Income Protection claim rates from the Institute and Faculty of Actuaries (Continuous Mortality Investigation 'IP06' series claim inception rates).

We adjust these rates to reflect to our own experience and reinsurer data.
The tool is defaulted to return results for being unable to work for four weeks or more. If you have sick pay or savings and your adviser recommends deferring the start of payments for a longer period, you can adjust this on the results screen for a more personalised view.

Suffering a serious illness or dying

These probabilities are based on the rates of a serious illness or death occurring, published by the Institute and Faculty of Actuaries (Continuous Mortality Investigation '16' series accelerated serious illness morbidity tables).

Chance of dying

These probabilities are based on mortality tables published by the Institute and Faculty of Actuaries’ (Continuous Mortality Investigation '16' series assured lives mortality tables).

Important notes

Industry rates

The calculator uses industry rates to estimate the probability of certain events happening within defined time periods. These rates are typically based on the experience of insured lives, using data collected from life insurance and income protection policies issued by UK life insurers. The experience of insured lives may differ from the wider population. Insured individuals may have better access to healthcare and financial support and may be likely to seek preventive care and early treatment.

Independences assumption

For combined results for two people, each life is assumed to be independent.

The need for advice

These figures are for guidance only and should not be considered as advice.