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Fears over maximum protection age

Most providers have not increased the maximum age of their income protection policies from 65 years despite the Government extending the state pension age to 68.

The state pension age is currently 65 for men and 60-65 for women but from 2010 it will gradually increase so everyone born after April 6, 1978 who are currently 29 years or younger will retire at 68 and everyone born between April 6, 1959 and April 6, 1978 will retire between 65 and 68.

Direct Life & Pensions sales and marketing director Richard Verdin says any policyhol-der born after 1959 is likely to see their policy run out before retirement, leaving them vulnerable for up to three years.

He says: “This provides another reason for consumers not to buy income protection and advisers not to sell it. It is not fit for purpose. You wouldn’t sell someone with a 25 year mortgage a 22 year policy.”

Unum and Prudential now offer income protection to age 70 and Cirencester policyholders can choose to increase their policy to age 67.

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