The marketing director for Canada Life Group Insurance said the company had found a “widespread lack of understanding” of how group income protection works in the business community.
However, he said companies that employ a financial adviser buck this trend, pointing to research by Canada Life that showed 41 per cent of employers that have gone down this route have “got to grips with how the product works as a result”. This figure falls to 35 per cent for companies that use an accountant and 29 per cent that use a legal adviser.
The need for advice about group income protection is confirmed by the fact that more than a quarter (27 per cent) of human resource professionals know “little” about Gip, according to the research.
Mr Avis added: “Financial advisers are in a unique position to deliver the gospel of Gip right on the doorstep of companies up and down the country. Trusted and relied on by their clients, they can use their knowledge and experience of Gip to really bring the benefits to life for the key decision makers.”
Jackie Fancourt, IFA at Midlands-based Jay Financial, said: “I only have one client with Gip at the moment and even though I like to recommend Gip, due to its valuable benefits, most choose private medical insurance, rather than protecting income, which I find rather strange. Small businesses are less preoccupied with employee benefits generally.”
Canada Life has joined the list of insurers that have extended cancellation periods for annuity customers in the light of the Budget changes to pensions drawdown. Customers who were in their 30-day cancellation period on 19 March now have until 25 April to cancel their annuity, should they wish to do so. The FCA has issued guidance for advisers and firms whose customers were in the midst of annuity advice and applications when unlimited drawdown was unveiled by George Osborne, chancellor of the exchequer, last month. |
