Nicola Culley attempts to discover how to broaden the appeal of term assurance.
Morgan added: “Flexibility is very important because clients are very likely to have changing circumstances – such as when they marry or have children. Family income options add a lot of value.”
Sarah Fullaway, director at protection advice firm Oviso, had similar views. She said people wanted family income benefit and menu products and for advisers, it was “very difficult” to do business with an insurer that did not have multiple quote capability.
L&G is an insurer that does offer a menu-based approach and family income benefit. Bonny Burns, product and technical director at L&G, said there were few insurers offering family income benefit despite it being an attractive, additional option for people where traditional cover did not fit.
For example Burns said, it was an easier concept to manage for future guardians of children, if the policy paid out a monthly income on death as opposed to a lump sum.
She added that, for the increasing number of renters too, it could very well be an attractive alternative option.
Burns said: “It is not a particularly new concept but perhaps some insurers just have not built it into the systems yet.
“As the market changes and some people are renting rather than buying advisers definitely want to see more flexibility and options for clients. And family income benefit can be very affordable. It would be good for the market to see more of these products.”
Bright Grey and Scottish Provident offer two products; a menu-based one which has a whole host of features; and one which just offers death benefit and nothing else. The latter is cheaper.
Managing director Roger Edwards said: “There is always a balance because price is so important in the sales process. It is a very fine balance. Price always rules the day but advisers always want the option to advise on slightly more expensive cover.”
