Income Protection  

Why income protection is evolving

  • List the common causes of income protection claims.
  • Describe how income protection is evolving beyond the core insurance product.
  • Identify the role of critical illness cover and how to look beyond the claims statistics.
CPD
Approx.30min

In fact, CI is often associated with cancer – and considered the ‘go-to insurance solution’ – and as the role of CI cover evolves and cancer survival rates improve, we are seeing the product being used more to offer choices to the policyholder while they recover from what is often a life-changing event.

With Macmillan Cancer Support reporting that cancer patients are £570 a month worse off, this highlights the need for and value of all-round protection, and the respective roles of both CI and IP in supporting a policyholder’s income and their recovery. 

Looking beyond the claims statistics

What this analysis shows is that protection is so much more than making sure our life insurance provides for our loved ones should the worst happen.

We have demonstrated that through IP and CI, protection is very much for the living and not just following a death.

Although there are similarities in product design and causes of claims, there are key differences in the types of IP that best suit your client depending on their occupation. 

It is also important to understand how protection products are evolving to deliver a service that is much more than just financial cover and a payout.

These additional services are often available without making a claim, but customers tell us they often value them more highly than any financial benefit they may receive from a policy.

The lesson is that protection claims statistics can tell us a story, but to provide the best advice to clients it is important to understand the entire proposition and service offered by these products.

Justin Harper is head of protection marketing at LV

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. An income protection claim is a one-off payment. True or false?

  2. According to the author, 'white collar' income protection is typically offered by which type of insurers?

  3. Which one of the following is not true about 'blue collar' income protection policies?

  4. According to the ABI and including data from the specialist friendlies, the top cause of IP claims is musculoskeletal at what percentage?

  5. According to the author, IP is evolving and is increasingly becoming more of a what?

  6. The article says critical illness cover is often associated with which type of illness?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • List the common causes of income protection claims.
  • Describe how income protection is evolving beyond the core insurance product.
  • Identify the role of critical illness cover and how to look beyond the claims statistics.

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