Lifequote has updated its Intelligent Protection software so advisers can now use level term as an alternative to family income benefit for the protection of dependants.
It now encourages income protection to be used for mortgages which go past age 65 and provides a ‘contingency life cover’ facility that allows ad-hoc life cover to be added for gap filling.
Advisers can now input their applicant’s anticipated retirement age and the system will default to the age at which the applicant will become eligible for their basic state pension.
Direct Life & Pensions managing director Michael Ward says the firm was prompted to upgrade Intelligent Protection by new Icob rules that allow advisers to sell protection with terms of more than 10 years past the customer’s 70th birthday.
He also says some advisers prefer to use lump sum life insurances for family protection in addition to family income benefit, so now they have the choice.
Ward says: “We are providing Income Protection quotes to age 65 for mortgages that run past age 65, with the appropriate suitability text warnings about borrowing beyond retirement age. So now rather than not have any income protection we now quote up to age 65 and advise the customer that there is a risk that if they fall sick between their 65th birthday and the end of their mortgage they might not be able to keep up the payments unless they have some short term savings to use to pay the mortgage. Previously many advisers had not provided any cover to 65 which leaves a much bigger protection gap.”