Protect Issue 3

Protect Issue 3

Protect

issue 3 / autumn 2021

For all your Protection & GI needs

Headline Story

Special Feature Hiring top talent in a changed marketplace J pages 6 & 7

Other Features

Fracture Cover – Does it cost an arm and a leg? J pages 4 & 5 For financial advisers only.

Protect what matters the most with mortgage protection payment insurance J pages 8 & 9 Supporting your clients in a post pandemic world J page 14

Arriving at quick decisions for clients We accept around 8 out of 10 individual protection applications immediately. It takes Aviva.

Find out more: connect.avivab2b.co.uk/adviser/personal-protection

Based on online acceptance rates.

For financial advisers only. Arriving at quick decisions for clients We accept around 8 out of 10 individual protection applications immediately. It takes Aviva. Based on online acceptance rates. Find out more: connect.avivab2b.co.uk/adviser/personal-protection Aviva Life & Pensions UK Limited. Registered in England No.3253947. Registered office: Aviva, Wellington Row, York YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number 185896. PT151197 08/2021 aviva.co.uk

Protect

issue 3 / autumn 2021

For all your Protection & GI needs

Headline Story

Special Feature Hiring top talent in a changing marketplace J pages 6 & 7

Other Features

Fracture Cover – Does it cost an arm and a leg? J pages 4 & 5

Protect what matters the most with mortgage payment protection insurance J pages 8 & 9 Supporting your clients in a post pandemic world J page 14

“ I’m here... but not here

”

77% of UK workers say having to wait for a GP appointment impacted their productivity 1 Are employees getting the support they need – when they need it? Help@hand, the health and wellbeing app from Unum, gives employees fast, direct access to: + Remote GPs + Mental health support + Physiotherapy + Medical second opinions + Life, money and wellbeing support

Help@hand is available at no cost to our policyholders * – full details and eligibility at unum.co.uk/help-at-hand

*Available to insured employees of all GIP, Exec IP and SPI policyholders and CI and Life policyholders with up to 250 employees in their business. Help@hand is provided to Unum customers by third party specialists chosen by Unum. Help@hand does not form part of any Unum insurance policy. It is subject to the terms and conditions of the relevant third party provider. Help@hand can be withdrawn or changed by Unum at any time. There is no additional cost or increase in premium as a result of Unum making this benefit available. Employee assistance programme is provided directly to customers by Lifeworks. 1. Achieving Work/Health Balance – study conducted for Unum based on a UK representative sample of 2,031 full-time adult workers aged 18+, between 28th October and 8th November 2019.

Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered and Head Office: Milton Court, Dorking, Surrey, RH4 3LZ. Registered in England company number 983768. CR00627TPM 06/2021

Protect - Issue 3 | 3

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 with an article from Tenet’s Research Hub, Fracture cover is an additional benefit that a lot of protection providers are adding to their product range. The Research Hub have examined which providers and products offer fracture cover and what advisers should consider when determining whether this is a valuable benefit to a client. A client might re-mortgage many times during their lifetime and provide referrals to family and friends. How can brokers avoid losing out on valuable repeat business? Pages 12 & 13. As an adviser, you’re likely to face objections from your protection clients regularly. Jude Reynolds, Business Account Manager at Zurich, suggests a toolkit of how to handle objections and have a productive discussion. Full article page 15. On page 17, Royal london’s Jamie Jenkins considers why the services of financial advisers are still so underused. Paymentshield have identified that nearly 60% of advisers overlook selling general insurance in the “guilty gap” even though there are plenty of opportunities to sell GI. This article will look at some of the reasons why and what you can do to bridge the gap. Read more on page 19. Value added services, like AIG’s award-winning health and wellbeing service Smart Health, hold enormous potential to react to changing client needs and have become just as important as financial protection. Full article on page 21. On page 22, Source have outlined the key dates that brokers who sell GI need to be aware of, following the FCA GI Pricing Practices Market Study. It also includes a link to Source’s free, on-demand webinar, providing more detail for anyone who is still unsure on the new rules. Keeping it simple: On page 23, Marcus Primhak from LV= discusses the income protection market and how LV= have gone back to basics with their new IP offering. We hope you enjoy reading this issue of Protect and if you have any feedback on this publication, we’d love to hear from you.

Best wishes Cristina Giovanelli Marketing Consultant

4 | Protect - Issue 3

Fracture Cover Does it cost an arm and a leg?

There is a growing trend in the protection market across life, critical illness and income protection to provide fracture cover either integrated into the policy or as an additional paid for bolt on. This cover can be applied to the policyholders and under some policies to their children at an additional cost. But what is the benefit of paying an additional premium for this?

Jo Rigby Technical Director

Protect - Issue 3 | 5

participate in not so extreme rugby, mountain biking or cage fighting! 3. Does the client have an emergency fund to fall back on without having to pay for additional fracture cover? Assess whether there are sufficient funds to support them throughout their recuperation, and don’t forget to ensure this is topped up again after. 4. Are there any existing policies in place which already include fracture cover as standard? Why pay for an extra benefit which is already included in an existing policy? Consider the client’s existing policies in the first instance. Also consider whether their Accident, Sickness or Unemployment policy would pay out or their Medical Health Cash Plan if they have one. 5. Does the client have the budget to add fracture cover to the policy? As always, does the client need the benefit and can they afford the additional The table below details the approach taken by the current providers who offer fracture cover at the time of writing. L&G is the latest to launch into this market this year. The table highlights the difference in approach across the providers – offering fracture cover as standard or at additional cost. As is commonplace with most providers, if a client has multiple policies with the same provider, fracture cover can only be included in one of those policies. A client cannot elect to include fracture cover across all policies to benefit from multiple claims. The range of fractures covered varies per provider and some include dislocation, tendon rupture and ligament tear, the payout for these being lower than a fracture. It’s always important monthly premium. The Market

to read the small print as hairline, stress and fatigue fractures may not be covered. If a client were to sustain multiple fractures after an incident, then some providers will only pay out on one of those and it is up to the client to select which when claiming. However, others will pay out across multiple fractures but will put a cap on the total benefit paid. Fracture Cover is only available at the outset of a policy. If a policy is in joint lives, each life assured can choose to add the cover or not and the additional premium applied is usually per life assured. With some providers, the cover can be written on an annual auto-renewable basis. As such, advisers must ensure the auto-renew nature of the policy is fully explained to clients to ensure the annual continuation of cover is necessary, however policyholders can opt out of auto- renew at inception if they choose. If the product is an annually reviewed offering, clients need to be made aware the premium may change over time from outset. Children’s Cover As the table below illustrates, whilst not currently included on Tenet’s Protection Panel, Metlife’s MultiProtect policy is somewhat of a rarity in the fracture cover space, offering the option of extending cover (along with other protections if relevant) to children of the insured. This optional cover does include an additional monthly fee, but includes cover for children up to the age of 18, or age 23 if in full- time education. So in summary, in some circumstances fracture cover can prove to be a valuable benefit as long as the priority needs of the client are met out of available budget in the first instance. And for all our budding Olympians who no doubt will be taking up skateboarding or freestyle BMX inspired by the Team GBs excellent medal record at the Tokyo Olympics, be careful, as fracture cover may not pay out.

Depending upon the extent of the fracture, living costs could increase as a result. This may be extra childcare costs if your client is unable to look after a child as a result of the fracture, time off work for hospital or physio appointments, additional car parking costs for those hospital visits and potentially additional mobility aids required throughout rehabilitation. These costs can mount up and this is where fracture cover could play a part. However, any additional bolt on requires an assessment of the client’s need for this additional cover to then justify the additional cost. So there are a few things you should consider first such as: 1. Is the client employed and in receipt of sick pay or entitled to statutory sick pay? Clients may receive sick pay from their employer which could contribute to these extra costs but may not cover all. It is worth exploring the amount and period over which sick pay is paid in the first instance before recommending an additional premium for fracture cover. Alternatively, if your client is self-employed and has a physically demanding job, then this may be of more benefit in the absence of any sick pay from an employer. First things first, assess the financial impact on the client should they sustain a fracture which puts them out of work for a period of 6 weeks or more? If the client needs to replace lost earnings through illness or injury consideration should be given as to whether income protection is a better option for them. Any budget constraints however may mean that fracture cover is the more affordable option although not directly comparable with income protection. 2. Does their occupation or hobby increase their risk of sustaining a fracture? It is important to consider the exemptions applied to fracture cover especially if your client is an extreme sportsman/woman or

Number of Fractures Covered

Max Benefit Paid per Claim

Cover Extended to Children

Annual Cap on Claim Benefit

Annual Cap on Claims

Type of Policy

Provider

Monthly Cost

Life, CI, IP, FIB No

Aviva

£4

18

£6000

1

£6000

From £4 (inclusive of additional value-added benefits)

Cirencester Friendly

19

£1500

1

£1500

IP

No

Unlimited (up to £7500 cap) £7500

Life, CI, IP, FIB No

Legal & General

£5.90

20

£7500

LV=

£0

18

£2200

1

£2200

IP

No

Metlife **Not currently on Tenet panel

Multi- protect Cover

Unlimited (up to plan limits)

Unlimited (up to plan limits) Up to £3750

Yes (at additional cost)

From £8

11

Royal London

£0

18

£8000

2

£4000

IP

No

Zurich

£6.90

18

£6000

Unrestricted

£6000

Life, CI, IP No

6 | Protect - Issue 3

Hiring top talent in a changing marketplace

Protect - Issue 3 | 7

June 2021 saw the number of live job vacancies throughout the UK increase to pre-pandemic levels for the first time since early 2020. The recruitment market is currently candidate led across all sectors and employers and recruiters are needing to work hard to attract top talent into their businesses. Passive candidates are feeling cautious about changing jobs after an extremely unpredictable 18 months, and hiring demand far outweighs the number of high-quality, active candidates on the market. The pandemic has given people pause for thought and time to consider their lifestyle and work/life balance. Businesses are having to think carefully about creating the best packages they can to attract the talent they need and this is not just about offering high salaries. Workplace culture and an attractive benefits package are becoming just as important to candidates as remuneration. When considering a job offer, candidates are likely to consider: • Financial stability of the organisation • Basic salary/OTE and a valuable package of benefits • Quality leads being provided (where appropriate) • Availability of flexible working arrangements • Time spent commuting to and from the workplace • Workplace culture • Autonomy within their role Businesses serious about attracting the best people are now offering true flexible working arrangements wherever possible. According

to The London Chamber of Commerce, 52% of business owners are making plans to offer remote working options in some form to their employees when the pandemic is over. Employers who are looking to attract new talent need to carefully consider their opportunity and the potential benefits of whether the role could be done either: • Completely remote • Flexibly, with a hybrid mix of office and home-working • Full-time office work Of course, the greater the amount of flexibility employers can provide in the way work is done, the greater their chances of attracting talent to their business. A flexible approach means you can consider skilled and talented people who live further afield, working parents and those with other outside responsibilities. As confidence in the economy gradually increases, the number of jobs has risen quickly and exponentially. This has in turn led to many businesses turning to recruitment agencies and professionals to provide them with support. If you’re thinking of using a recruitment agency to find your next hire you may want to speak to us first. Tenet can provide a competitively priced, stress-free recruitment service. Our team of experienced financial recruiters will advise and manage every stage of your recruitment process – ensuring you quickly and affordably find the very best talent. Our competitive pricing structure also means you could save up to £10,000 compared to the cost of using other mainstream or specialist recruitment agencies. If you’d like support and advice attracting top talent into your business don’t hesitate to call or email on 0113 239 0011 (select option 2) or [email protected]

8 | Protect - Issue 3

Protect what matters the most with Mortgage Payment Protection Insurance

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

With an estimated 213,120 house sales completed in June 2021 – more than twice the total in May 1 , it’s no surprise that with the booming housing market it’s important to ensure your customers have sufficient mortgage payment protection in place. For most people their mortgage payment is typically the biggest monthly outgoing and almost certainly their most important. So it makes sense that anyone who has a mortgage has a plan in place should something happen to them which may impact these payments being made. Therefore, should your customer lose their job or suffer from an accident or illness they can rest assured that they have a safety net in place which enables them to continue to pay off their mortgage. It’s also worth noting that with the recent rush to beat the stamp duty deadline, customers may have put off arranging mortgage payment protection, and as their adviser it’s for the good of both you and your customer to make sure they have the protection they need for their circumstances.

In buoyant times such as a booming housing market, many advisers can put protection on the backburner, as perhaps the merits and value of writing the advice are not always clear. However, an increased protection focus can pay dividends

We understand that protection sales may not be part of the 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 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28

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