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Having been in the business 30 odd years there has been no radical shake up of the Protection industry, yes critical illness has come on the market but that’s about it.
Life assurance can’t really change as dead is dead, once upon a time you did whole of life with convertible term so there was always a policy in place at time of death, now it’s all term assurance, mainly due to the fact the whole of life generated potential profits therefore you have to be an IFA to advise on it.
Having carried out research on PHI a lot of the “sales” ideas go along the line of “if you had a money making machine would you insure it………” that’s been going for as long as I have been in the business and these days the money making machine would be leased.
There is also a trend in telling us , how long we are statistically going to live or the chances of suffering an illness etc etc.
This follows the old training idea of “backing up the Hearse and let them smell the roses”
Who cares what the statistics say, my mate Dougie drinks and smokes like a trooper, who always said I will never make old bones and at 70 he proves statistics wrong, unfortunately his son died last year aged 31 from cancer.
So If we designed our own Income protection product which reflects the real world that we work in everyday advising everyday clients, what features would we want to see, what underwriting conditions would we need, what sales aids/ technology would help us.
Maybe underwriting at the point of application.
more flexible deferred periods for those who get 10 days sick per year for example.
mortgage related income protection especially for the self employed. They have proved their income for the mortgage so shouldn't be that hard.
I don’t know about you but I don’t tend to tell clients that statistically the are going to die in 20 years or do you know at your age that you have a 25% chance of getting cancer.
What they do want to know is where will the money come from if……….
Your thoughts appreciated.”
