Unum Provident is extending its income protection plan to cover policyholders up to the age of 70 in response to the recent changes to age discrimination laws and the likely raising of the state pension age.
The insurer believes it is unique in offering IP up to age 70- IP policies typically expire at age 65- but Unum expects other product providers to follow suit and extend cover to age 70 in the future.
The option will be available on new policies and brokers can get quotes through Webline and Assureweb or direct from UnumProv. The Exchange currently does not have the systems to support the extended age quotations but is expected to roll them out shortly.
Head of retail sales and marketing Linton Penman says: “The age discrimination law was the main driver. Our thinking was that if people are living longer they have to fund a longer retirement so they will need to work longer. What happens if they suffer an illness when they get into their late 60’s? It was a logical extension.”
CBK principal Peter Chadborn says: “I think there is an increased likelihood that more people will have to extend their working lives due to insufficient retirement planning. An important factor therefore is for IFAs to recommend protection plans that incorporate sufficient flexibility to support such changes.”