Lifequote has launched a full suite of short-term income protection policies to support existing panels, in response to demand from advisers looking for a cross-provider comparison and transactional service.
The adviser portal and administration service from Directlife now offers products with a payment period of one, two and five years, with the sum insured based on gross annual income and the cover based on an inability to work through illness or injury or loss.
Lifequote claimed that advisers are looking to provide income protection policies, often associated with mortgage sales where affordability is an issue, with products providing cover for up to five years, but written on a long term basis providing an alternative to more traditional products.
The insurers on the new panel are: Aviva, Bright Grey, British Friendly Society, Exeter Family Friendly, Friends Life, Legal and General, Vitality Life and LV.
The firm has also automated provider maximum benefit calculations with this release, in order to simplify those seeking to identify the levels of cover that insurers offer.
Neil McCarthy, sales and marketing director at Directlife, explained that several factors are driving an increase in demand for short term income protection as an alternative to traditional income protection.
“Housing inflation has meant that many buyers are stretching their finances, and this, coupled with the demands of the MMR, means that shorter term planning is often taking priority.
“The more buoyant employment market also creates opportunities to change job, which may necessitate a review of any benefits provided, stimulating demand.
He added that from an adviser’s perspective this is good news, but it also necessitates having systems and processes in place that allow them to search across providers both on cover and price and be able to transact on a single platform.
peter.walker@ft.com
