THE HOME OF THE

PROFESSIONAL ADVISERExeter Family Friendly

Income Protection, Welfare Reform and Client Discussions

Learning Outcomes• Welfare Reform & State

Benefits

• Positioning IP with clients

• Advisers Tools

• Policy Options

26 Million26 MillionWithout Income ProtectionWithout Income Protection

Source: Mintel 2010

The Premier League of protection

Source: Demos report

83

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Sw

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Neth

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US

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SA

Germ

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Fra

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UK

UK

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Italy

Italy

What the state will provide

• Can your clients rely on the Government?

Feeling safe?

• £7 billion clampdown on benefit claimants

• Half a million claimants found fit for work

• Will your customers feel safe in the hands of the state?

Source: DWP 2010Daily Mail Daily Express

The State Marathon

• First form 21 pages long• Detailed questions on mental and physical

health• Face to face medical assessment

Source: DWP

The State Marathon

• Basic rate just £71.70 a week during assessment phase

Source: DWP

The State Marathon

• Assessment phase lasts for first 13 weeks of claimSource: DWP

The State Marathon

• Support increases to £100.15 maximum if claim is successful

Source: DWPApplies to single person in the work related activity group

The State Marathon

• All claimants have to attend regular work-focused interviews

Source: DWP

The State Marathon

UP TO 4 WEEKS 13 WEEKS UP TO 1 YEAR

It won’t happen to me…

Over 1.2m individual term assurance policies sold in 2013

Over 450,000 individual critical illness policies sold in 2013

90,000 individual income protection policies sold in 2013Source:

Office of National Statistics 2012DWP Research 2012Macmillan Cancer CareSwiss Re 2013

500,000 deaths in England and Wales

109,000 of working age diagnosed with cancer p/a

350,000 new employment support allowance claims made p/a

…or will it?

Your Client Bank…

Young and singleFoot-loose and almost fancy free

• Live alone or with partner

• No children or dependents

• Renting, first time buyers or family home

• Sports, social life, shopping

Need to Protect• Payments on the roof over their heads

• Their lifestyle

• Not much else

Young FamiliesThe squeezed middle

• Live with husband, wife or partner for life

• Young children or baby on the way

• Own their home, or would like to

• Dinner, DVDs, days out

Need to Protect• The mortgage or rent

• All the family essentials

• Each other if the worst happens

Mature FamiliesTuition fee paying parents

• Children have (nearly) flown the nest

• Less than 10 years left on the mortgage

• Holidays, hobbies, home improvements

Need to Protect• Their plans for retirement

• Children's future

• Health

Bills & ThingsOwn Occupation

One rate for all

No link to income Cover from just £11.49 per month

Who to target? Those looking for first step protection

Self employed

Part-time workers, part-time homemakers

Adviser tools

Building awareness and interest with consumers

Helping Income Protection achieve its potential

Helping you increase your sales

Financial forecast calculator

Show the importance of Show the importance of income protection to your income protection to your clientsclients

Provide a 12 month outlook of your client’s financial future if they were too ill to work

Show the shortfall in your client’s finances, if they had to rely on sick pay and the state

financial forecast calculator

Get started

Download

• Posters and flyers

• Web banners and email signatures

• Approach letters

• Personalise your posters and flyers

Provides you with a striking range of material designed to bring more business your way

Read more

Learn

•Facing the facts

•A wake-up call

Download

•PowerPoint templates

Gives you compelling arguments and frightening statistics to wake your clients up to income protection

Jumping the hurdles Download material to really bring home the need for protection when speaking face to face with clients.

“Apply and buy” for income protection

Revolutionise the customer and adviser journey

No need to wait for answer

Summary

• Review cover annually – client contact

• Families face real hardship

• Segment clients into groups

• Use Provider Tools to get IP on the

Agenda

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