A white paper on income protection is being published next month which aims to tackle some of the product's complexities and reverse the trend of declining sales.
Peter Le Beau, founder of Le Beau Visage, says the paper will present a 10-point plan which tackles the major issues affecting IP.
In particular, he says it will look at how to raise consumer awareness of the product and how to make advisers realise it is essential for the majority of their clients.
The paper is also likely to focus on how the industry and the state can work together in defining incapacity and it may suggest adopting the state’s definition.
Le Beau says: “If the definitions of incapacity are the same, there won’t be the issue of not understanding when someone is disabled. A shared vision of incapacity would be very helpful.”
In addition, the paper will stress the fact providers want to pay all valid claims but at the same time avoid the 40% of claims from people who are not in fact disabled.
Le Beau adds: “We will also think about issues like mortgage payment protection insurance (MPPI) and treating customers fairly (TCF). For example, what would a TCF version of IP look like?”
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