The increases of the state pension age could mean income protection holders face a gap in their cover of up to seven years, experts have warned.
IP policies, which provide people with an income if they become too sick or injured to work, are often arranged with an expiry date — typically the age the client expects to retire or the state pension age.
But the state pension age is increasing for both men and women to reach 66 by October 2020 before rising to 67 by 2028 through a gradual process.
For customers who took out a policy expecting to retire earlier than the age they will now retire at, they could face a gap in their protection.
In the worst case scenarios women who expected to retire at 60 but are now unable to retire or draw their state pension until they are 67 will see a seven year shortfall.
The first people to draw their pension at age 67 will be those born in 1961.
The government first announced its intention to raise the women state pension age from 60 to 65 in 1995. This started to come into effect in April 2010. By November 6, 2018 the state pension had been equalised for men and women at age 65.
Clients who have remained in a similar state of health since buying the policy may be able to extend their policy or take out a new, similarly priced plan to cover them for the missing years.
However, those with deteriorating health may not be able to get cover or afford a new policy and anyone already claiming will be unable to extend their policy.