According to the ABI, any occupation is usually used in the event of a customer having a high-risk occupation or if they have pre-existing medical conditions.
The ABI is looking at removing the option from applications as part of the ABI’s total permanent disability review.
Royal Liver IFA marketing manager Aidan Dewhurst says says: “There is little point keeping something that serves such little purpose, especially when there are alternatives, for example, ADWs. Products need to evolve and any evolution should take the customer with them in terms of clarity, understanding and benefit.”
Master Adviser IFA Roy McLoughlin says the lack of understanding around “any” versus “own” could be hindering protection sales.
He says: “Once again, we have a consistency problem within the industry. I don’t think advisers totally understand ‘own’ and ‘any’ for certain professionals and that could be holding back sales of income protection and critical illness.”
However Direct Life and Pensions Lifequote key account manager Phil Jeynes says: “There is a place for it at the moment because not every occupation is going to be covered under an own occupation basis. So for high-risk people, it is better to have work tasks covered than nothing at all.’