Swiss Re's recent report, ‘Term and Health Watch’, highlights encouraging growth in the income protection market, with the number of sales up 22.6 per cent from 2017-18.
Legal & General is the latest insurer to improve its proposition, but what changes did it make and how does this improve its offering to clients?
The first notable change is the removal of its standard drug and alcohol exclusion.
This exclusion essentially meant that any person unable to work due to an illness or injury, of which a primary cause was the misuse of alcohol or non-prescription drugs, would not be covered.
Removing this means the only exclusions Legal & General now applies are those added within the underwriting process because of disclosures made in the application.
In recent times, a number of insurers have extended their minimum benefit guarantee for certain NHS workers. For most occupations, the minimum benefit guarantee is set at £1,500 a month.
Legal & General has now followed both LV and Zurich by increasing the minimum for NHS doctors, nurses and surgeons to £3,000 a month.
Perhaps the biggest addition to its income protection proposition is the inclusion of its Legal and General nurse support services, supplied by RedArc, and previously only offered via critical illness plans.
This provides clients with access to specialist nurse support in six areas: serious illness, disability and bereavement support, second medical opinion, mental health support, carer support, help at home and eldercare.
For many, these services will be a lifeline, offering practical support to help them cope with their condition, alongside financial support.
Over the past few years, Legal & General has made massive strides in improving the comprehensiveness of its propositions and these changes provide further evidence that this continues to be the direction of travel for its protection propositions.
Adam Higgs is head of research, adviser services at F&TRC