Independent financial research company Defaqto has published an Income Protection review aiming to help advisers deliver customer-centred advice on income protection.
Among its conclusions, the free Defaqto review suggests selling income protection policies as part of a menu plan is one of the most effective ways for IFAs to ensure their clients have adequate cover.
It found that, of the 53 products currently on the market, 13 offer cover as part of a protection menu plan alongside life assurance and critical illness options.
Defaqto claimed menu-plan products mean that an IFA can offer clients the full range of covers in the first instance, with the option to scale back benefits one by one if the client finds the total premium too high.
Ben Heffer, Defaqto's Insight Analyst for Life & Protection, said: "Income protection is a complex area of advice, and the lines between protection products have often become blurred in the advice process. In particular, we have found that critical illness cover is often seen as a substitute for income protection.
"Menu plans are an effective way of selling to meet all client needs, however much depends upon the order in which the needs are explored. Used properly, they can increase sales for the IFA and provide a better range of cover for the client."
The review also aims to help IFAs educate their clients about the importance of having adequate income protection cover. Topics covered include:
• An overview of the income protection industry and the latest regulation to affect it
• Challenges facing sales of income protection
• Product overview and development highlights
• Tips for IFAs to maximise sales opportunities
The free income protection review is available for download on Defaqto's website: www.defaqto.com/adviser/ifa/guides
