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LifeSearch’s Baigrie questions IP sales incentives

LifeSearch chief executive Tom Baigrie has questioned whether there is enough of an incentive for advisers to sell income protection, given the lack of clarity around state benefits and the work involved.

Speaking at an Income Protection Task Force event last week, LifeSearch chief executive Tom Baigrie said: “I wonder if there is enough incentive for advisers in what is not the most profitable area of protection sales, in spending the extra time going through IP.

“People confuse IP with payment protection insurance, they are not aware of shortfalls that may occur in welfare benefits in the case of disability and that requires more time and effort in the advice process. What we need is more widespread clarity on welfare benefits regulation as well as what the IPTF is doing, and I haven’t seen enough to suggest that the welfare regulations are going to be made clearer to really boost IP.”

Baigrie later told Money Marketing the lack of consumer awareness of IP, combined with complex welfare regulations, leaves consumers unable to work out whether they would be better off buying IP or not were they to become to disabled or ill in the future. 

IPTF executive committee member Roy McLoughlin says: “There is a belief with some people that if they claim on IP, they won’t be eligible for state benefits, which is very dangerous.”


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