View more on these topics

Product matters

Income protection has been in the doldrums with continually falling sales.

LV= has broken this mould with the mortgage & lifestyle protection plan which is aimed squarely at the mortgage market but is equally worthwhile for non-mortgage-related clients.

The plan incorporates many sensible aspects that are usually missing from mainstream products. It offers own-occupation cover to all but the highestrisk occupations, allows applications up to age 65 and only uses guaranteed premium rates.

It looks to reconcile the simplicity of PPI plans with the more sophisticated and essential cover of an income protection plan. It allows a deferred period choice of one, two, three or six months and waiver of premium automatically kicks in during a claim.

Another innovation is the ability to tailor the plan term to suit either the mortgage term or the client’s preference. Most plans insist on an expiry age of 55, 60 or 65.

All applicants will be tele-interviewed which means that only minimal client details need be logged in. This saves time and removes the adviser from arguments over non-disclosure.

Premium rates reflect gender, age, smoker status and occupation and premiums for lower-risk occupations are especially competitive. This is an excellent product which, subject to underwriting, looks certain to take significant market share.

Alan Lakey is a partner at Highclere Financial Services

Recommended

Advice you can bank on

Institute of Financial Planning chief executive Nick Cann believes banks are well placed to take financial planning to the next level and predicts that major names will enter the fray within five years.

Grand theft auto

The private-sector final-salary schemes that have been so dominant in the workplace for nearly half a century will probably be almost gone by then.

Star of India

Emerging markets continue to attract large amounts of investors’ money and single-country funds are grabbing a lot of attention. Brokers should remember, however, that these are inherently more volatile than funds with a wider remit. One of the countries grabbing most of the headlines is India.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com