Progress from Royal Liver has produced a guide for advisers to help them explain to consumers what they are and are not buying when they purchase critical illness cover.
The publication of the guide follows a series of training sessions by the provider, which revealed the majority of advisers do not discuss what is and is not covered on critical illness (CI) with the customer at the point of sale.
The reasons advisers gave for not discussing the subject varied from a lack of time, the key facts document is too brief and providers’ technical guides go into too much detail.
The guide gives more information about what the Association of British Insurers’ (ABI) CI definitions mean and explains when the firm will or will not pay out under the cover.
Advisers can use it in front of the customer, or direct the customer to an online version if they deal with them over the phone, and explain in plain English what they are and are not buying when they purchase CI.
Andy Milburn, IFA market manager at Progress from Royal Liver, says: “Most providers and adviser firms are in the process of adopting treating customers fairly. We will all be asked as part of that process if we discuss with customers what is and is not covered by the products that we recommend to them and have to document how we do that. If advisers use this sort of document in conjunction with the key facts and policy documents it should help them to start to resolve this issue.”
The firm recently launched the first ‘traditional’ CI cover product incorporating the new ABI standards.
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