IFAs are calling for standardisation and clarity over what can be deducted from an income protection (IP) claim payment, saying its complexities make the product difficult to advise on and unattractive to consumers.
The comments follow a calculation by Defaqto which suggests there are 13 different ways providers express the maximum percentage of insurable salary, which is compounded by the numerous different approaches providers take towards deducting other insurance from the claim payment. Although the treatment of payments such as state benefits and mortgage payment protection insurance (MPPI) is relatively clear in the product literature, Kevin Carr, senior technical adviser at LifeSearch, says particular grey areas exist over the treatment of waiver of premium and family income benefit critical i...
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