The public’s lack of appetite for income protection may be challenged by a number of enhancements in the market, according to this month’s protection spotlight.
Writing in the December edition of Money Management, Sam Barratt says that this important area of protection is often overlooked by individuals.
“Income underpins all of life’s financial plans from raising a family and paying the mortgage through to saving for retirement,” she says. “But, while income protection enables someone to safeguard this key component, it has so far failed to appeal to consumers.”
However, new developments in the product may lead to greater appeal, Ms Barratt says. In October, Bright Grey launched a new product designed to make it easier for new customers to claim by enabling more people to have own occupation cover and Aviva said it will write all individual policies on an own occupation basis.
“These moves will help to dispel some of the negative media coverage around the more ambiguous definitions, such as any occupation and activities of daily living, and help to gain consumer confidence,” says Ms Barratt.