THE HOME OF THE
PROFESSIONAL ADVISER
Exeter Family Friendly
Income Protection, Welfare Reform and
Client Discussions
Learning Outcomes
•
Welfare Reform & State Benefits
•
Positioning IP with clients
•
Advisers Tools
•
Policy Options
26 Million
Without Income Protection
Source: Mintel
2010
Source: Demos report
Italy
Spain
UK
France
Germany
USA
Canada
Netherlands
Sweden
Norway
The Premier League of protection
83
44
What the state will provide
• Can your clients rely on the Government?
Feeling safe?
•
£7 billion clampdown
on benefit claimants
•
Half a million
claimants found fit for
work
•
Will your customers
feel safe in the hands
of the state?
Source:
DWP 2010
Daily Mail
Daily Express
The State Marathon
• First form 21 pages long
• Detailed questions on mental and physical health
• Face to face medical assessment
Source: DWP
The State Marathon
• Basic rate just £71.70 a week during assessment
phase
Source: DWP
The State Marathon
• Assessment phase lasts for first 13 weeks of claim
Source: DWP
The State Marathon
• Support increases to £100.15 maximum if claim is
successful
Source: DWP
Applies to single person in the work related activity
group
The State Marathon
• All claimants have to attend regular work-
focused interviews
Source: DWP
The State Marathon
UP TO 4 WEEKS
13 WEEKS
UP TO 1 YEAR
It won’t happen to me…
…or will it?
Over 1.2m individual term
assurance policies sold in
2013
Over 450,000 individual
critical illness policies
sold in 2013
90,000 individual income
protection policies sold in
2013
Source:
Office of National Statistics 2012
DWP Research 2012
Macmillan Cancer Care
Swiss Re 2013
500,000 deaths in England
and Wales
109,000 of working age
diagnosed with cancer p/a
350,000 new employment
support allowance claims
made p/a
Your Client Bank…
Young and single
Foot-loose and almost fancy
free
•
Live alone or with partner
•
No children or dependents
•
Renting, first time buyers or family
home
•
Sports, social life, shopping
Need to Protect
•
Payments on the roof over their heads
•
Their lifestyle
•
Not much else
Young Families
The squeezed middle
•
Live with husband, wife or partner for
life
•
Young children or baby on the way
•
Own their home, or would like to
•
Dinner, DVDs, days out
Need to Protect
•
The mortgage or rent
•
All the family essentials
•
Each other if the worst happens
Mature Families
Tuition fee paying parents
•
Children have (nearly) flown the nest
•
Less than 10 years left on the mortgage
•
Holidays, hobbies, home improvements
Need to Protect
•
Their plans for retirement
•
Children's future
•
Health
Bills & Things
Own Occupation
One rate for all
No link to income
Cover from just £11.49 per month
Who to target?
Those looking for first step protection
Self employed
Part-time workers, part-time homemakers
Adviser tools
Building awareness and interest with consumers
Helping Income Protection achieve its potential
Helping you increase your sales
Financial forecast calculator
Show the importance of income
protection to your clients
Provide a 12 month outlook of
your client’s financial future if they
were too ill to work
Show the shortfall in your client’s
finances, if they had to rely on sick
pay and the state
financial forecast calculator
Provides you with a striking range of material
designed to bring more business your way
Get started
Download
• Posters and flyers
• Web banners and email
signatures
• Approach letters
• Personalise your posters and
flyers
Gives you compelling arguments and frightening
statistics to wake your clients up to income protection
Read more
Learn
• Facing the facts
• A wake-up call
Download
• PowerPoint templates
Jumping the hurdles
Download material to really bring home the
need for protection when speaking face to face
with clients.
“Apply and buy” for income protection
Revolutionise the customer and adviser journey
No need to wait for answer
Summary
•
Review cover annually – client contact
•
Families face real hardship
•
Segment clients into groups
•
Use Provider Tools to get IP on the Agenda
Handset Questions:
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Seminars?
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