View more on these topics

Age rules could push up group protection rates

Group income protection premiums could rise by 50 per cent due to the new age discrimination rules, warns Legal & General.

It says many employers previously cut off benefits to employees once they reached 60 but the European legislation, introduced on October 1, 2006, requires them to extend benefits to employees to a default age of 65, unless they can justify otherwise.

Group risk technical manager James Walker says this could increase the cost of providing group income protection dramatically, leading to premium increases of up to 50 per cent for some schemes.

He says some employers are already threatening to reduce or scrap group income protection schemes entirely.

But Walker says employers need to be very careful and take legal advice when levelling down employee benefits which have been written into employees’ contracts.

He also warns that cutting back benefits could lead to more people falling back on state benefits.

Walker says there is still basic misunderstanding among employers and advisers over the new rules, with some believing they do not need to provide employee benefits to workers aged 65 and over.

Unum Provident head of commercial marketing Wojciech Dochan says: “We have seen a lot of firms increase the cut-off age to 65. There have been premium increases of 20 per cent and more but it depends on the age profile of the company and the previous framework of their benefits. We are engaging with brokers and clients on a scheme-by-scheme basis.”

Legal & General has produced a second update for IFAs on the implications for group risk benefits of the age discrimination rules. Advisers can obtain a copy by emailing


70-Year battle for war bond payout

The Government has come under fire for failing to pay back the £1.9bn it owes to citizens who bought war bonds despite finally paying off its World War Two debt to the US last month.The 3 per cent yielding war bonds were bought by UK citizens to help fund the First World War effort.Over 70 […]

The tips are down

I have always wondered whether fund managers, top quality IFAs or industry commentators such as Mark Dampier and Justin Modray, who I respect highly, are best at predicting where the most attractive future investment returns are to be found.

In the system

Many of us will be reflecting on what the year ahead holds. The markets have certainly taken a turn for the better, with the FTSE ending the year above the 6,000 mark.

272M in Standard shares unclaimed

Over 235,000 Standard Life policyholders have yet to claim a total of almost 90 million shares following the company’s flotation.At the closing price of 306p on January 2, these shares were worth 272m.Standard Life is urging policyholders to come forward to claim their shares.The shares are being held in the firm’s unclaimed asset trust and […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm