There are also indications that insurers will ramp up this flexibility. Guardian Financial Services, a newer challenger in the protection market, offers a facility – reserved cover – that allows policyholders to increase cover or add a different type through a shortened underwriting process, without the need to resort to a key life event. This is available during the first 27 months of a policy.
Mr Harvey welcomes this innovation. He says: “It recognises that life event-based increases can be restrictive. Insurers need to appeal to younger people who might not be considering marriage, children or a house purchase.”
Adding value
The other advantage of these regular nudges is that they can help clients get more value from their policy. Many protection products now include a range of added-value benefits, most of which can be used without the policyholder needing to make a claim. These include second medical opinion services such as Best Doctors, medical information, and counselling and bereavement support.
As an example, Legal & General customers can take advantage of its GP24 service – in addition to a range of health support services – for an additional fee of £3.25 a month. This gives the policyholder and their family access to an unlimited number of virtual GP consultations plus a prescription fulfilment service.
With life insurance offering a low-cost and simple way to protect a client’s family, it should be part of any financial planning conversation. Given it also supports their financial goals, raising awareness is a must.
