Online system aims to help consumers understand their options more clearly
A London-based specialist health and protection intermediary has developed a comparison tool which it claims helps consumers to make a more informed choice when taking out income protection (IP) insurance.
Drewberry Insurance, which is an appointed representative of Chase Templeton, said the tool is not created not to replace the financial advice process but rather help consumers and their adviser navigate their way through a sector of the protection market which it said “is about as complicated as it gets”.
Tom Connor, head of protection at Drewberry, said that consumers who may have been quoted “various different policies from different places” and want to know how one plan differs from another. For these consumers the tool allows the details of two plans to be compared side-by-side, bringing up key considerations comparing both policies directly.
The tool will be particularly useful in terms of highlighting the difference between own occupation cover and products which are based on so-called “activities of daily living”, an area causing debate across the protection industry at present.
Connor said that many people are taking out policies with weaker occupation definitions without actually knowing what they are covered for until they speak to an adviser, or go to make a claim.
He added: “It is also the case that some insurers have decided to offer certain workers own occupation cover for the first year or two of a claim and then switch the incapacity definition to working tasks, which is extremely confusing for anyone who isn’t very familiar with this cover.”
The tool, which is available here, also includes details, where available, of each provider’s claims payout rate.