Market Buoyed by Recent Upward Trend in Income Protection Sales

Thursday, May 16th, 2024

Income Protection Still a Popular Choice

The UK mortgage and protection market has been encouraged following recent reports by the Association of British Insurers (ABI) and iPipeline, both of which indicate an upward trend in consumers taking out income protection policies (IPP) in 2023 and into 2024.

The Foundation of Financial Resilience

Having a policy that can provide a replacement monthly income if a person cannot work for a prolonged period due to sickness, accident or disability is the foundation of people creating financial resilience for themselves and their family.

Dispelling Misconceptions

Income protection policies have too long been incorrectly thrown into the same basket as historic policies such as Payment Protection insurance (PPI), causing a misconception and reluctance to buy amongst those people who may need it most.

Understanding Policy Benefits and Timeline

A traditional income protection policy will provide a monthly benefit until the insured person can return to work or until the end of the policy term, whichever is earlier.

Alternative policies are also available which instead pay the benefit for a specified maximum claim period, which can sometimes be a suitable alternative for those with a restricted budget.

Policies will also pay a specified amount of cover during the claim period, which is determined at the outset based on the income of the insured person.

Typically, many policies are arranged to activate and commence paying benefits once the insured individual’s employer ceases providing any company sick pay entitlements, aiming to reduce the period during which little or no income is received.

The Importance of Expert Advice

As many income protection policies are assessed and underwritten at the point of application (to fully understand the applicants’ situation concerning their occupation, health and lifestyle), the success rate for any related claims tends to be higher than those claiming against historic non-underwritten policies where in many cases ‘pre-existing conditions’ not independently assessed at the application stage can potentially lead to claims being rejected.

Income protection insurance is however only one aspect of a robust personal protection solution and ensuring the correct cover is put in place is not always straightforward. Consequently, many people consult with a specialist protection adviser like those we have here at Caboodle Finance.

Contacting Caboodle Finance: Your Protection Adviser

Typically, personal protection advice is offered by a specialised adviser without obligation, and they do not charge for their services, as the insurance company will remunerate the adviser through a commission for any policies successfully accepted and implemented.

Our specialist team always strives to give the finest tailored personal protection advice. Please check out what our clients’ think of the service they have received from us by viewing our testimonials page located HERE.

Then, to understand more about how our approach could help you, please contact one of our specialist advisers here at Caboodle Finance of Sutton Coldfield, Birmingham on 0121 308 9114. Alternatively, click HERE to contact us online via our website, and one of our experts will contact you.

We very much look forward to speaking with you.

**Source – Protection Reporter 02/04/24

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Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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