Insurer LV recently launched an online tool for advisers to use with clients, to determine the likelihood of needing various forms of protection. After answering five questions it showed that before age 65, a couple in their mid-to-late thirties would have a 62 per cent chance of being too ill to work for two months or longer, a 26 per cent chance of suffering a serious illness, a 13 per cent chance of dying and a 75 per cent chance of one of these previous scenarios happening.
Adding or linking to tools of this kind to your website can give people a reality check, and help make the case when advisers are determining which products are likely to be needed.
The tool can be found at www.riskreality.co.uk/gen.
Vitality also has a similar if more in-depth calculator on its website, which helps to determine your real age based upon a range of health and lifestyle factors.
3) Industry claims data.
The protection industry has been publishing claims paid statistics for over ten years on most products, but people still expect insurers to try to avoid paying claims.
Drewberry Insurance published a 2015 consumer survey that showed on average people believe insurers pay claims just 50 per cent of the time.
Alongside most providers announcing their claims statistics individually, each year the ABI publishes industry-wide figures on what the protection industry has paid out in total.
Advisers can add a snapshot of claims paid to their website, to help prove insurance pays out when it is needed.
The latest figures ABI figures show the protection industry paid £3.1bn during 2013 (or £8.4m every day) in individual protection claims, to 99,000 families, and 97 per cent of protection claims were paid.
Further stats, and breakdowns by product, can be found at www.abi.org.uk
4) Shortfall calculators.
Shortfall calculators can give clients a good indication of their protection situation before going through the full advice process.
While often a fairly crude calculation, it can provide a simple starting point for the client in terms of their current situation and an indication of what gaps they have.
Advisory firm London & Country has a life cover shortfall calculator on its website, which after going through outstanding debts, expenses to be covered, number of children, existing cover in place and general income needed month-to-month it calculates the shortfall of life cover in place.
Similarly, most insurers provide tools for advisers to use with clients, to calculate the shortfall in life cover or income protection and the implications of relying on state benefits.
5) Business protection calculators.
