Benefit reforms provide protection opportunity

The Welfare Reform Act, which came into force today, scrapped existing incapacity benefit for new claimants and replaced it with Employment and Support Allowance (ESA). Defaqto says the rule change will lead to reduced support for those incapacitated by sickness or accident, and this could create increased demand for income protection insurance. Advisers should approach their SME clients to ensure that they have group IP,” says Ben Heffer, principal life and pensions consultant at Defaqto, “and to ensure that those that do have the right levels of cover in place.” He says policies which ...