Advisers are considering the cost of protection products ahead of its pay-out and service levels, research suggests.
The study, carried out by Lincoln Financial Group, concludes IFAs look at competitive pricing first despite increased focus by providers on other issues, including the flexibility of underwriting.
In addition, the research, formed from interviews with 192 advisers between January and April, suggests a presence on portals is the second most important consideration.
Furthermore, according to the study IFAs anticipate the pricing of premiums to continue to be the deciding factor in the future, with 78% suggesting they will continue to place their business with the most competitively priced providers.
Ian Noble, head of life sales and marketing at Lincoln Financial Group, says advisers should consider more than price when recommending protection products.
“Competition in the marketplace has meant providers have been vying for business by lowering prices,” he says.
“This is good news for the consumer, providing the lower prices do not translate into tighter claims standards and more declined claims.
“But as always price should not be the only concern for policy holders; it should be considered on balance with payout rates and levels of service.”
Lincoln Financial Group offers protection cover as part of its Financial Foundations product which includes an inheritance tax planning solution.
Financial Foundations provides whole-of-life cover in one place under one wrapper including income protection and critical illness.
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