The independent financial research company, Defaqto, has released an income protection review which aims to help advisers deliver customer-centred advice on income protection.
Among its conclusions, the review proposes selling income protection policies as part of a menu plan as one of the most effective ways for IFAs to ensure that their clients have adequate cover. It found that of the 53 products presently on the market, 13 provide cover as part of a protection menu plan alongside life assurance and critical illness options.
According to Defaqto, with a menu-plan product, an IFA can offer clients the full range of covers in the first instance, with the choice to scale back benefits one by one if the client finds the total premium too high.
Ben Heffer, Defaqto's Insight Analyst for Life and Protection, said: "Income protection is a complex area of advice, and the lines between protection products have often become blurred in the advice process. In particular, we have found that critical illness cover is often seen as a substitute for income protection. Menu plans are an effective way of selling to meet all client needs, however much depends upon the order in which the needs are explored."




