Surely we are all getting tired of hearing that income protection is under-sold, under-purchased and under-valued?
It is the single most beneficial insurance to have – absolutely essential for the self-employed and for a large percentage of employees.
One reason for IP’s lack of success is that many advisers find it difficult to explain both the problem and the solution.
Unlike the wealth of assistance available for pension and investment planning, protection receives far less attention from product providers and from some financial publications.
It is therefore excellent to note the launch by Legal & General of an IP hub that aims to make life easier for advisers by providing a one-stop-shop comprising tools and guides to assist the advice process.
Not least of these is the ‘deadline to breadline’ calculator designed to highlight how quickly money can run out when off sick.
The adviser inputs the client’s monthly outgoings, whatever state benefits they will be eligible for, as well as any savings that have been accumulated. The calculation engine then specifies how many weeks before the funds run dry.
This is likely to be an eye opener for consumers as it puts into plain language an often complex calculation, making it easier to quantify imminent loss.
The hub also has a maximum benefit calculator that breaks salary down into net monthly figures and prompts the user to input the amount of employer sick pay as a percentage figure. This highlights any deficit and advises the resulting maximum benefit that can be insured.
The hub also offers a webinar, a budget planner, an employee benefits checklist and an adviser’s guide, containing plan details, claims stats and details of those conditions mainly responsible for claims.
Advisers aiming to increase their penetration of this market should check out this hub.
Alan Lakey is founder of CI Expert