Analysis: should the age 70 rule be abolished?

In its response to the Financial Services Authority’s (FSA) consultation paper on the removal of the age 70 rule, the ABI says it is in favour of ‘option two’, which would remove the age condition and the 10-year term condition. This would mean pure protection products could be sold under ICOB rules even if the consumer has a protection need beyond age 70 or if the policy is likely to extend beyond 10 years from when the person first became insured. Kevin Carr, head of protection strategy at Lifesearch, says he is also in favour of option two because extending the rule to age 80, as p...