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Aviva simplifies Income Protection+ benefit calculation

Advisers will be able to protect more of their client’s earnings

Aviva has simplified the benefit calculation applied to its Income Protection+ product.

The changes, which will be available in the maximum benefit calculators on Aviva For Advisers, aim to offer more choice to intermediaries and their clients. 

The new benefit calculation will be 65% of the first £60,000 of the customers’ gross earnings, plus 45% of any gross earnings above £60,000. The calculation was previously 65% of the first £10,000, plus 55% of £10,000 to £90,000 plus 45% thereafter.

Aviva said advisers will now be able to protect more of their client’s earnings, which could present an opportunity for advisers to review the level of cover for their clients.

The maximum benefit available under the policy will still be £20,000 per month (£240,000 per annum).  

As a result of the change, advisers can expect to see Aviva quote more often on portals for clients needing either single or multi-benefit income protection products.

Aviva is also updating its income protection maximum benefit calculator and the maximum benefit dual deferred calculator to reflect the change.

Mark Cracknell, head of protection distribution at Aviva, said the insurer is always looking for ways to remove complexity for advisers and offer more choice.

“With the changes we have made to Income Protection+, we are reaffirming our commitment to the adviser market by making income protection calculations much simpler and enabling advisers to protect more of their client’s earnings,” he added.

Marie Bedding, head of learning and development at LifeSearch, said it will now be easier to work out what is available in terms of cover.