Risk Clinic: MPPI and PPI concerns


Several clients have come to me with queries about existing mortgage payment protection insurance (MPPI) and PPI policies. I don't have the time to read all the policy documentation, but given the current situation in the PPI market for Treating Customers Fairly (TCF) and compliance reasons, should I look into re-broking them into standard products?

Matt Morris, Lifesearch The short answer is emphatically yes. Not all clients will be right to re-broke, but advisers should at least look into their needs and circumstances. In most cases, switching to income protection (IP) will be the right decision. As most advisers acknowledge, IP should be at the top of the list of products to discuss with clients when it comes time to examine their protection needs. There is nothing inherently wrong with PPI – it is a useful product as far as it goes. The problem is that is has been sold in huge numbers when in most cases, IP is the product t...

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