IFA Sales dip by 5%

September 15th, 2011 - 

PHI Insurance policies sold by IFAs dipped by 5 per cent, a report by Swiss Re has revealed.

In its annual term and health watch report on the UK protection market, Swiss Re found the number of PHI Insurance policies dipped from 61,455 to 58,350 in 2008.

Master Adviser IFA Roy McLoughlin says:  “The 4.7 per cent drop in CI sales might have something to do with cost and the fact that advisers realise that, out of the two products, IP is arguably the more important product for clients.”

New term assurance sales, including accelerated and critical illness cover, also dipped, from 1,514,930 to 1,447,895 policies around 6 %.

However, IP policies sold last year increased by 13.5 per cent to 126, 815 from 111,780 in 2007.  New whole life business also increased by 28.8 per cent from 219,362 policies in 2007 to 282,438 policies in 2008, making it the highest level since 2000.

Individual CI sales fell by 4.7 per cent from 536,143 in 2007 to 511,045 in 2008.  But the number of CI plans sold through an IFA increased by 2.5 per cent from 237,345 in 2007 to 243,384 in 2008.

Swiss Re life and health technical manager Ron Wheatcroft says despite the increases, the £2.3trn protection gap still stands.

Se says: “Various industry initiatives are now, at last, beginning to get off the ground, but to improve consumer understanding of our services and products, these initiatives need to pull in the same direction.”

New Health Insurance product rewards healthy lifestyles

September 9th, 2011 - 

A new permanent health insurance product from PruProtect has an own occupation definition of disability for all occupations.

You can choose primary health cover, reports review site Permanent Health Cover, which is cheaper than the comprehensive cover but with fewer benefits.   Both options allow a choice of guaranteed or reviewable rates and premiums can also be reduced through the Vitality health programme, where points are awarded for healthy lifestyles.

The programme also provides discounts from a range of companies, such as subsidised gym membership, health screens and Eurostar travel.  A choice of level, decreasing or index-linked cover is available alongside usual features such as guaranteed insurability and houseperson’s cover.

Unemployment cover from St Andrew’s Insurance is provided at an extra cost and there is a range of deferred periods, including seven days for self-employed clients.  Payments to self-employed clients are back-dated to day one in the event of a claim for deferred periods of seven days and one month.

This plan appears to offer advisers what they want for their income protection clients, with innovative features such as the recovery back-to-work benefits.  However, primary cover inevitably has some limitations compared with comprehensive cover.  There is no waiver of premium and guaranteed insurability is limited to a change in salary following promotion or changes to a mortgage.