Protect - Issue 2

Protect - Issue 2

Protect

issue 2 / summer 2021

For all your Protection & GI needs

Headline Story

Special Feature Protection for millennials The invaluable role advisers play for the next generation of homeowners J pages 6 & 7

Other Features Four ways technology can improve client engagement J page 11 The Future of General Insurance Advice J pages 12 & 13

Value-Added Benefits – The many great extras that clients need to know J pages 4 & 5

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Editor’s Forew0rd

Welcome to Tenet’s Protect magazine, a dedicated protection publication, providing advisers with a range of solutions, market insight, opportunities and business support tools which can be adapted to suit your business models. Tenet have utilised the knowledge and expertise of our specialist providers who offer their insight and guidance in this marketplace.

We open this issue of Protect with an article from Alicia Walsh, Tenet’s Technical Services & Research Consultant. Alicia looks at Value- Added Benefits - Every day services to discuss with clients considering protection for their clients protection needs. With a booming property market and a greater focus on helping younger buyers get their foot on the property ladder in the UK right now, Tenet&You consider the impact of ensuring that this new generation of homeowner are fully equipped with the protection advice they require for now and in the years to come. Full article pages 6 & 7. Keeping in regular contact with clients has never been more important. The Communication Package provides an extensive range of compliance-approved, publications, articles and content at a cost- effective price to enable you to communicate with your clients. Refer to the full article to find out about the ‘buy now, pay later’ offer. Pages 8 & 9. On pages 10 & 11, Intelliflo explain how technology and digital tools can help you foster deeper client engagement, improve the customer experience while boosting loyalty and trust, to support revenue growth. The future of General Insurance Advice – David Lloyd, Policy Manager at Tenet provides a summary of useful publications on the matter, to ensure that the FCA’s intentions and priorities are clear for anyone advising on these products. On page 17 Marcus Primhak, National Account Manager at LV=, discusses Critical Illness cover as part of a comprehensive protection package in the light of the key life-changing risks that modern families face. VitalityLife’s article on page 18 looks at the benefits of their Serious Illness Cover and poses the question ‘shouldn’t advisers feel compelled to justify why they haven’t recommended Serious Illness Cover, rather than why they have?’ We hope you enjoy reading this issue of Protect and if you’ve any feedback on this publication, we’d love to hear from you.

Best wishes Cristina Giovanelli Marketing Consultant

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Value-Added Benefits

The many great extras that clients need to know

Industry-wide, it has been widely acknowledged that there has been an uplift in conversations between advisers and clients regarding financial protection following the outbreak of the Coronavirus pandemic. This is great news, as it has served not only to facilitate discussions with clients who ordinarily might not have been open to looking at their protection needs prior to the COVID-19 emergence, but these conversations also help to highlight the additional benefits protection products can offer outside of their primary purpose, such as value-added service. This article looks at perhaps the two most relevant value-added services clients can look to utilise in light of the impact and restrictions the pandemic has had within society.

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Remote GP Appointments In terms of value-added benefits, the most notable option is that of virtual GP consultations. Some insurers include this service at no extra charge, some insurers do not offer this service at all, and some may apply an annual fee if a client opts for this benefit; therefore any discussion will be led by client preference and weighing up the overall benefits of the policies considered. Even prior to Covid-19, the prospect of obtaining an appointment at a local GP might have been an uninviting prospect. Often requiring clients to telephone their surgery precisely at the practice’s opening time to try and obtain an appointment for the same day, at a time requiring a half/full day off work in order to attend. Understandably, everyone has tried to do their part in helping the NHS, so clients may have been hesitant to request an appointment with their local GP, for fear any illness concern discussed may be deemed as insignificant or not important enough to trouble the service with currently. When making use of virtual GP appointments, clients can telephone or alternatively log onto a mobile app provided by their insurer, to request an appointment at a time that suits them, avoiding the rigidity of usual GP practice hours. Appointments can be scheduled for the same day, and can be via telephone or video conference, allowing clients to speak face to face with a medical expert who can visualise symptoms more easily rather than relying on a voice call. Following the outcome of the appointment, the consultant can issue private prescriptions and administer sick notes (which will carry a fee) if required, but gives a client the option of on-hand diagnosis and discussion, something important for peace of mind. For those medical cases which require further investigations, the GP can also refer the case to a specialist consultant if necessary. In terms of allowances, providers offering virtual GP appointments may cap the number of consultations allocated per year. However a number of providers take a much more generous approach and permit unlimited appointments per annum (as illustrated in Table 1). Additionally, some providers extend the service beyond the life of the insured, allowing appointments to be utilised by the insured’s partner and children also.

Provider

Number of Consultations Permitted Per Annum

When considering this alongside the benefits of an Income Protection policy, utilising this type of support may even mean that a full claim may not need to be reached, were a client to benefit enough from the initial support before their incapacity to work is reached. Alternatively, were an Income Protection claim to be paid, a client may find they’re able to return to work sooner as a result of having access to additional mental health services, as the additional professional support may assist towards a speedier recovery. What is helpful to consider is that the majority of value-added services aren’t purely restricted to one type of protection product: Options may be available on a variety of plans, i.e. life insurance, critical illness, and income protection offerings. Therefore, whatever protection needs a client has, value-added services can be accessed across various products. Additionally, value added services are not only limited to personal protection products, but are also a great talking point when advising corporate clients on larger- scale protection schemes, such as Group Life or Group Income Protection plans. Having a wider knowledge on the additional benefits of value-added services could be the difference between hesitant clients taking a step towards financial protection, as opposed to dismissing insurance as something “they don’t plan on needing”. Aside from protecting clients in a worst-case scenario, by referencing how these services are available alongside an insurance policy, advisers can provide tangible every- day examples of just how valuable protection products can support families, throughout both minor or more significant illness.

AIG

Unlimited

Aviva

3 6 2

British Friendly

Cirencester Friendly

Guardian

Unlimited

LV

5 4

The Exeter

Vitality Unlimited Table illustrates provider’s permitted number of GP consultations per annum. Virtual GP appointments can be a much welcome benefit to discuss with clients; allowing them access to speak with a professional at a time that suits them, this can be about any medical concerns, however minor, without the worry that they are “being a bother” when national health services may be stretched. Mental Health Assistance In recent years there has been an increased societal focus on mental health being viewed as importantly as physical health. This is reflected by the majority of insurance providers offering access to mental health support as part of their value-added services. Insurers now increasingly offer customers support in dealing with a large range of mental health issues, including anxiety, depression, bereavement, addiction, substance abuse, PTSD and even phobias. What is hugely reassuring for clients, is that this service is not only available at the point of claim for the primary purpose of the policy, but support can be accessed at any time throughout the life of the term, even if a main claim has not been made. Similar to virtual GP appointments, most insurers have chosen not to restrict mental health support to just the life insured and extend the service to policyholder’s partners and children. They also offer various avenues on how clients can reach out if they need help. Although options vary provider to provider, on the whole, insurers offer the choice of assistance by telephone, video conferencing, email or face to face consultations; giving clients the flexibility and confidentiality they wish when discussing sensitive issues.

Alicia Walsh Cemap – Technical Services & Research Consultant

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Protection for millennials – the invaluable role advisers play for the next generation of homeowners

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If you can’t advise, Tenet&You can help

Understanding and anticipating your client’s financial priorities and needs is key to providing the best advice possible to your clients. Securing adequate protection for your clients delivers peace of mind, as it not only protects your best interests by safeguarding your business compliantly, but also demonstrates a duty of care to your clients to ensure they have the protection cover they require. In light of changes announced in the Spring Budget, alongside a booming property market, we’re set to see the shift of ‘Generation Rent’ to ‘Generation Buy’. Tactics such as encouraging the return of 5% deposit mortgages and an extension to the stamp duty holiday until the end of September for homes under £250k are hoped to help younger buyers be able to get their foot on the property ladder. As millennials move into the world of property ownership, this new cohort of homebuyers will come with new priorities and needs. For instance, LV= revealed that more than 8 million 22-44 year-olds have considered income protection in the last three months. As the understanding of the value of protection grows in response to the coronavirus pandemic, 40% of 25-44 year-olds with no life cover are now considering life assurance, with an increase in demand for fair, transparent advice. 1 With heightened interest among younger buyers, advisers have an invaluable role to play in providing impartial advice and identifying protection gaps, whilst ensuring millennials receive the best mortgage arrangements for their requirements. Protection advice gap The protection gap is often referred to with 50% of all UK mortgages having no protection insurance. But is this gap partly caused by a lack of advice? Buyers entering the mortgage market may not know what kind of protection insurance they need or where to find it. As such, tech-savvy millennials will likely turn to the online comparison sites to source their protection products but will miss out on the superior advice from an adviser who can discuss the complexities of each product and their suitability to the client. This is why as an adviser it is imperative that you can give your clients access to protection advice to help them be informed both now and for the years to come.

We understand that protection sales may not be part of your proposition or that you may just be too busy to write protection. This is why Tenet&You have a protection lead referral scheme in place so that you can be confident that you’ve made protection advice available to your clients. What’s more, through the scheme we will pay you a commission on all successful leads, so you’re still benefitting financially from the referral. So far we already have a number of firms signed up who are benefitting from referring protection business into our in-house financial advisory firm, Tenet&You. Any referred clients still belong to you as you are merely referring your clients to us so that we can advise them on protection. It would be written on an indemnity basis and provides an added extra to the service you already provide, should you not have the time to conduct protection cover yourself. For example we can help you to delve into your back book to obtain previous month’s mortgage customer >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20

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