Legal & General Income Protection Plan
Legal & General has introduced a number of changes to its Income Protection Plan, including:
Reducing pricing across all occupation classes.
For NHS doctors, nurses and surgeons, it has adapted the benefit payments to match the sick pay contracts such NHS workers get in their first five years. IP products generally don’t do this, which can cause problems at claims stage.
Adding a new two year benefit term.
Introducing a no cost rehabilitation service. This offers those who qualify access to a specialist team of rehabilitation professionals. The service offers a structured return to work programme and avoids the need to wait for the deferred period to end.
Comment: L&G points out that a Mintel report found that only 10% of UK adults have IP cover. In response, it says it plans to introduce new initiatives to help advisers raise the need for IP with their clients and to enhance its intermediary offering.
The changes are not especially radical, but should help. For example, medical professionals have long had income protection needs that don’t always match what IP offers, and L&G has now introduced changes to remedy that. Price cuts are always welcome too – although perceived rather than actual price is more of an issue.
Overall the changes are useful and we hope this is the start of the insurance giant doing even more to encourage people to think about their income protection needs.
Plus points: Lower prices; Cover now matched to NHS doctors’ and nurses’ needs; Two year benefit option.
Not so plus points: The NHS market is relatively specialised and limited; Rehab is chosen by the insurer; Does IP need more innovation?
Website: www http://www.landg.com.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: IP; Legal & General