Everything you need to know about guaranteed insurability options
Guaranteed insurability options allow clients to increase their protection cover, following certain life events, without further underwriting. Whilst far from perfect, the GIO feature provides a valuable means of ensuring the policy can adapt to a change in the clients circumstances and the need for increased cover. Over the last few weeks we’ve covered GIOs across the full range of protection products and today bring those insights together in a single ‘everything you need to know’ roundup.
As an additional point, we would also take this opportunity at Protection Guru to highlight that we still believe there is work to do in improving the flexibility of products to adapt to a client’s changing circumstances. GIOs provide a useful means of increasing cover without further underwriting, but this is still mostly limited to a fairly small list of traditional life events and with a time constraint. As many consumers no longer follow a traditional path through life, it’s essential the products we offer properly reflect the changing needs and lifestyles of the people that need protecting.
Income protection GUARANTEED INSURABILITY OPTIONS
As a product designed to provide long-term protection against the risk of ill health preventing the client from working, GIOs are especially useful on income protection policies. In this insight we examined the different options available across the IP market and how insurers compare.
life and critical illness guaranteed insurability options
With life and critical illness policies typically covering a mortgage debt or intended to leave a lump-sum to loved ones in the event of a claim, a change in the clients circumstances (such as re-mortgaging) can easily prompt the need to review and potentially increase cover. There are a number of differences in the options offered on life and critical illness cover, compared to IP as we examined in this insight.
GUARANTEED INSURABILTY OPTIONS for renters
With rents rising at the fastest rate in a decade, the ability to increase protection cover is especially important for these clients. In recent years insurers have expanded their GIOs to include rental increases or moving from a rental to mortgaged property. In this insight we examined the options in more detail.
business protection guaranteed insurability options
When business circumstances change, Key Person and Shareholder Protection cover may need to be increased accordingly, otherwise there is a risk of being under-insured. Doing this through a GIO can be beneficial because it is less hassle than going through the underwriting process again and if the life insured’s health is worse than before, the plan will be priced on the previous health assessment. In this insight we looked in more detail at the GIO options applicable to business protection insurance.