Alternative medicine

13 July 2006 0:00 am

The great and the good of the protection industry have been calling for innovation and at last I think Prudential has introduced a product that fits the bill.

The severity-based multiple-claim model is new to the UK market but is a proven success in South Africa.

Taking the Discovery platform, Prudential has reworked the model for the UK market and developed something that is radically different.

This product complements needs-based analysis and advice models and should therefore appeal to advisers who take their clients' protection planning seriously and want to be able to assist them in addressing their protection needs within a long-term relationship.

Conversely, it may not appeal to those advisers who are looking for a quick term insurance sale on the back of a mortgage sale and, in fact, are more interested in selling rather than advising.

Initially, it could be perceived as complex but I believe it is only because it is a new concept that this opinion could be formed. To put it in context, wrap, equity release and drawdown are potentially complex products but a competent adviser will be able to explain and recommend these if they are the most appropriate products for their clients.

The ability of the plan to continue after a claim is an excellent feature. The sense of fairness will appeal to clients whereby claims are paid according to the degree of disability or illness rather than the traditional all-or-nothing approach.

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