Protect - Issue 4

Protect - Issue 4

Protect

issue 4 / Winter 2021

For all your Protection & GI needs

Headline Story

Special Feature

Other Features Too busy to take on protection business? Tenet&You can help… J pages 8 & 9 Five things your website should say about you J pages 12 & 13

Limited Benefit Income Protection J pages 4 & 5

Apprenticeships – What a great opportunity J pages 6 & 7

Protect - Issue 4 | 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.

Limited Benefit Income Protection has garnered increased attention recently. The Research Hub have examined the market and considered the benefits and drawbacks of these budget-conscious products. Read full article on pages 4 & 5 . Future proofing your business comes in many guises and nurturing talent and developing skills plays a big part in this. On pages 6 & 7 we will share how you can use apprenticeships to facilitate the training and development of a wide variety of roles within your practice. Too busy to take on protection business? Tenet&You can help… Business is good when demand is high. But what happens when demand outstrips resource? Find out how your business can benefit from partnering with Tenet’s in house financial advice business Tenet&You and broaden your service offering to help your clients achieve financial peace of mind. Full article on pages 8 & 9 . Recruiting? Don’t forget you get two free campaigns every year! If you’re recruiting now or thinking about it, try our professional recruitment service. Our team of experienced financial recruiters will advise and manage every stage of your recruitment process, helping you find the very best candidates quickly and with minimum fuss. Read more on pages 10 & 11 . On page 17 , recent research by Zurich has highlighted a preference by customers for digital tools when applying for protection. According to the survey, 65% of respondents would prefer to self-submit medical information online. On page 18 , Assurant’s article highlights the benefits and value of discussing Building and Contents Insurance with every customer. Andrew McCurrie, Actuary and Director of Technical Marketing at Vitality highlights why Serious Illness Cover is a better option for your clients. Read more on page 19 . 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. I’d like to wish you a Merry Christmas and a peaceful New Year.

Protect is a Tenet Group Ltd publication c/o Marketing Team Tenet Group Ltd 5 Lister Hill Horsforth Leeds LS18 5AZ Tel: 0113 239 0011 Email: [email protected] Web: www.tenet.co.uk Protect magazine is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and conditions: Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

Cristina Giovanelli Marketing Consultant

4 | Protect - Issue 4

Limited Benefit Income Protection

George Healey Research Consultant

Limited Benefit Income Protection (LBIP) is an expanding market, helped in its’ expansion in no small part by the pandemic highlighting how loss of regular income through illness can have a serious impact on people’s lifestyles. Can it help the forgotten insurance Income Protection take its’ place alongside Life and Critical Illness? LBIP policies are income protection policies that pay the benefit for a shorter period of typically 1, 2 or 5 years. These policies are not to be confused with Short Term Income Protection (STIP), such as an annually renewable ASU policy. What sets them apart from full term IP, is that they instead allow multiple claims to be made for shorter periods throughout the life of the policy, subject to certain conditions. The key selling point of LBIP is in its’ affordability, with policies costing sometimes as little as 25% of the cost for a full term IP product, making them suited to clients working on a very tight budget.

The fundamental drawback of LBIP is in the limited nature of the benefit period. Should a client suffer a chronic illness or disease, they may be functionally unable to work again, however the limited benefit policy will cease to compensate them after the given period has expired, potentially leaving a client with no replacement income post-benefit expiry. The policy can pay out on multiple occasions, but that is subject to a return to work for a minimum of 6 months. In a situation like the one described, this return to work requirement could prove impossible. The Market LBIP products are primarily targeted at those whose budget constraints mean that full term IP is not affordable, or who only need cover for a shorter period. They are available to both employed and self-employed customers, typically in office-based or professional roles, however there are products in the wider market geared towards more high-risk occupations. The below tables itemise a selection of currently available LBIP products in the market, broken down by their benefit payout period, and the associated monthly premium. The first table shows a sample of the quotes based on a male office-worker, aged 32, on an annual income of £22,000. The second, a female dental hygienist,

aged 52, on the same income. This >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

www.tenet.co.uk

Made with FlippingBook - professional solution for displaying marketing and sales documents online