Legal & General has recently enhanced its Income Protection Plan by:
* Improving pricing across all occupation classes.
* For NHS doctors, nurses and surgeons, adapting the benefit payments to match the sick pay contracts these NHS workers get in their first five years. IP products traditionally do not do this, which can cause problems when a claim is made.
* Adding a new two year benefit term.
* Offering a rehabilitation service, at no additional cost, which offers qualifying claimants access to a specialist team of rehabilitation professionals. The service is designed to help customers through a structured return to work programme without the need for waiting for the deferred period to start.
What They Say
Director Craig Brown said: “We are always listening to intermediaries to find new ways of developing our products and help close the protection gap, whilst providing the highest level of support to our partners. Intermediaries are invaluable to our business and, following feedback for greater pricing and support for NHS workers, we have added these benefits to our current income protection offering.”
What We Say"L&G says it wants to introduce new initiatives to further enhance its intermediary product offering and to raise awareness among brokers of the need to discuss IP with customers. The latter follows the latest Mintel report that only 10% of UK adults have some form of IP.
"These latest changes are not revolutionary, but they do help add to the plan’s appeal and for groups such as NHS doctors and nurses, they make IP now a useful option to consider. The rehab benefit too means practical help, not just money, is a built-in benefit and helps create a more caring image for insurers too.
"L&G is one of the biggest protection brands and these latest changes (including improving pricing) should further enhance its appeal to advisers and clients alike. It would be good to see even more innovation added though if IP is to achieve the sales volumes this type of cover should be achieving."