Royal & Sun Alliance is urging IFAs to use stakeholder's introduction to review employers' life cover.
It says many advisers will be reviewing employers' pension arrangements against the 1 per cent benchmark, which should allow the opportunity for unbundling risk benefits from the pension arrangement.
It says employers have usually opted for a bundled approach by making death-in service arrangements and income protection plans through their pension provider.
R&SA says IFAs are overlooking the need to review risk benefits to ensure continuing relevance for employees and the products' value for money.
It believes many firms have not reviewed the terms, conditions or pricing basis of employee benefit packages and some will find themselves with increasingly uncompetitive, costly and potentially outmoded risk benefit cover.
Corporate market leader Peter Anderson says: “There is an obvious need for IFAs to focus on control and co-ordination of clients' benefit packages. Unbundling can make a big difference to costs and terms and conditions, which can outweigh the cost of using a second provider.”