Protection watch...the month in view

Popping your clogs

Would you bet on your own life expectancy? Drewberry insurance has launched a life expectancy calculator which predicts the chances of popping your clogs before your mortgage is paid off.

The clever feature estimates that one in ten male and one in 15 female first-time buyers would die during their mortgage term. The calculator is available on the firm's website and should help advisers to have an interesting conversation about a client's protection needs. VERDICT: Promising lead

Grace period

Does your IP plan change the terms if you lose your job? I recently learned of an adviser's client who lost his job and soon fell ill before finding a new one. Unfortunately the illness was quite serious and he claimed on his Income Protection policy only to find out that the ‘own occupation' definition he had been paying for was automatically switched to ‘work tasks' the day he lost his job.

I can understand the need to change the definition for someone who doesn't work, such as a house person, but surely in such circumstances a period of grace would more fair? VERDICT: Back to the lab

Quick fix

MoneySupermarket.com has launched a new short term income protection (STIP) channel for consumers looking to buy short term cover. Looking at the site, it clearly explains the options and key differences between both short-term and long-term IP, as well as ASU and MPPI, which is to be welcomed.

Perhaps surprisingly, the website also encourages shoppers to check what cover they already have in place, such as any cover provided by the employer, and also briefly addresses the difference between ‘own occupation' cover and work tasks.

Since 6 April, it is no longer possible to sell PPI or MPPI at the same time as a loan, so it makes sense to cover wider expenditure, not just monthly loan costs, and this is one reason why more firms are adopting the STIP approach over MPPI. VERDICT: Promising lead

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