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.
National Account Manager for Protection, Craig Bryce, talks about the importance of life insurance for dads in the run up to Father’s Day.
Father’s Day is just around the corner. However, 58% of men in the UK with dependent children have no life insurance. A fifth have also admitted their household would not be financially stable without the main income, new research from Scottish Widows suggests.
Despite a fifth of fathers admitting their households would not survive financially if the worst were to happen to them, only a mere 18% have a critical illness policy. 16% said they could only pay for their bills for a minimum of three months and more than two-fifths said they would have to dip into their savings. 17% admitted their savings would last a maximum of three months and 12% said they have no savings at all. Scary!
The same research also stated that 42% of dads do not have the protection of a will, power of attorney, guardianship or trust arrangement in place for their families despite two thirds of fathers being the main bread winners. These figures really astonish me and I think that more has to be done by the industry to help fathers protect their families. As mortgage and insurance brokers it is our duty to start these conversations.
Many fathers don’t consider life insurance as a necessity and they don’t view critical illness insurance as a financial priority – they just don’t think they need it until it’s too late. Protection and insurance have a greater value than anything fiscal though. It can give long term peace of mind and security for loved ones. That is priceless.
Clients often assume that the worst won’t happen to them and it doesn’t bear thinking about. But the low risk of death also generally means lower cost insurance for your clients. That makes peace of mind worth paying for.
So this Father’s Day, let’s get dads in the UK talking about their life insurance options and help them to further protect their families.
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.
The figures are according to a sample survey of 5,022 UK adults – 15.17% of whom were dads. If spread across the entire population amounts to approximately 4.5 million fathers without cover.
National Account Manager for Protection Craig Bryce looks at why the latest figures on child bereavement has put more emphasis on the importance of life cover to support families during a difficult time.
When a child loses a parent it can be a lonely time and difficult to deal with emotionally. The death of a parent can often have a painful impact and children need plenty of support, especially from close family and friends.
It goes without saying that the remaining family will value the relief that financial cover brings, to help cushion the blow and deal with tragic circumstances. In many cases the death can be very sudden, leaving no room for worries about filling the hole left by the loss of a major household income.
Child bereavement is more common than people think
A child is left bereaved more often than you may assume. The latest figures show that one in 29 children of school age have been bereaved of a parent or sibling, that’s the equivalent of a child in every classroom. In fact, a parent of a child under 18 dies every 22 minutes in the UK, around 23,600 every year.
Children do not always get the full support they need during this time, especially as the rest of the family are working on coping with the loss. Financial support during this time can be crucial to give the family the breathing space needed to grieve properly and support each other, especially when a child is involved.
Life insurance can be peace of mind worth paying for
The death of a parent is called a worst case scenario for a reason. It does not bear thinking about and many clients like to assume it won’t happen to their child. But the low risk of death also means a generally lower cost for your clients when compared to other types of cover. This makes it a peace of mind worth paying for.
Although life cover is easy to understand, it is still important for clients to consider other factors when taking out their policy. Your clients will need the advice and guidance of their adviser, to ensure they have the right type of cover for them and their circumstances.
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.