The rise of short term income protection
People’s opinions on income protection may be changing. Brokers are becoming more interested in writing and advising on IP and more people are taking out policies. Our National Account Manager for Protection, Craig Bryce, takes a look at the latest trends in the market.
If there is one thing I have noticed this year that has been different to others, it’s the increase in the amount of brokers looking to write more income protection and an eagerness to engage with IP training sessions.
When I’ve previously talked to brokers many would shy away from writing short term IP policies with a one or two year payment period. But this year it seems as if attitudes are changing. More and more brokers are writing short term IP policies – and rightly so!
When you are trying to tailor a plan to a client’s budget sometimes short term IP might be all they can afford and receiving a benefit for 1 or 2 years is better than nothing at all, right? As well as this, you could always argue that if you are unable to work for 2 years then the likelihood is that you will have claimed on your critical illness plan as well.
Having breathing space could really help your client in an unfortunate circumstance. If you’re off work your bills will keep coming and you also still need to eat and live a life. Having short term IP, even if it’s just for one year, can give a client precious time to decide what they want to do, even sell their house if they need to.
I think with brokers working more towards a client’s budget and tailoring plans specifically to them we will see more short term IP sales going forward, and personally I’m all for it! Short term IP is an option depending on your client’s budget but should your client be able to afford comprehensive income protection then that’s something that should also be considered.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income.
Join our award-winning Mortgage Network as an appointed representative, or become a member of our Mortgage Club, to start benefiting from our fantastic range of comprehensive services and support. Call the Broker Support Team on 0345 130 7446 (opt 1) to find out more.