Your IndustryMay 1 2014

Obtaining the best policy for your client

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Firstly, Emma Davies, market development manager of Legal & General, how to assess which policy is the best for a given client will depend on the type of cover required and what policy features would be needed.

For example, she says if life cover only is required then cost should be a consideration but if critical illness benefit is required, more detailed research on the illnesses covered may be important to the client as well.

Ms Davies says another consideration should be the support and service offered by the provider to help you with the application process and the broader arrangement i.e. with share protection the sample trust documentation and cross option agreements.

The best policy will be the one that best fits client’s needs, in terms of protecting financial exposures, offering the widest cover at the best price, and in most cases written under an appropriate trust, according to Dougy Grant, protection director of Aegon.

How adaptable the policy is should also be considered. If changes happen within the company, Mr Grant says most policies are flexible and can be changed to add or remove lives, extend the period of cover or the amount of benefit.

In each case, Mr Grant says it is wise to check beforehand with the insurance provider.

Mr Grant says relevant life is something of an exception because its rules are governed by HM Revenue & Customs and can only be arranged to cover life and terminal illness on a life of another basis, however the policy is portable and can be taken by an employee who changes employment.

When searching for the best policy for your client, Ian Smart, head of product development and technical support for Bright Grey, says there are a number of expert research systems that will help in choosing a policy for your client’s needs and budget such as Defaqto and CIExpert.

He adds industry portals such as Avelo, Assureweb and Webline would be able to help with premium rates, but advisers may also want to find out what a provider’s history on claims paid is and check their financial stability. This information can usually be obtained from the provider’s website.

In addition, Mr Smart says advisers should consider that some providers have a dedicated business protection team with whom they and their client can discuss specific requirements and receive guidance through the whole process. Once again, Mr Smart says their contact details can usually be found on the provider’s website.

Care must also be taken to ensure that tax-efficiency is maximised, adds Alan Lakey, partner of Hemel Hempstead-based IFA Highclere Financial Services.