Increasing protection insurance without underwriting – 4 things you should read
Life isn’t static and peoples’ circumstances regularly change, from buying a first home having previously rented, to career changes or starting a family. Increasingly people are also no longer following a traditional linear path through life and instead are moving in and out of work, changing careers entirely and getting on the housing ladder later in life. It’s important that Protection insurance cover, be it life insurance, critical illness or income protection is flexible enough to adapt to those lifestyle changes and where necessary provide clients with the means of adjusting their cover.
At Protection Guru we would argue there is still much for the industry to work on in order to make protection policies more flexible and the situation at present is far from perfect. The traditional option that clients have to alter their cover are guaranteed increase options, which provide the means of increasing cover at certain live events, without undergoing further medical underwriting. In this ‘4 things you should read’ we bring together some recent insights we’ve published on this subject, providing advisers with information on guaranteed increase options across all protection policies.
GUARANTEED INSURABILITY OPTIONS FOR RENTERS – HOW PROVIDERS COMPARE
Over the last few years the protection industry has increasingly focused on renters and initiatives to highlight the importance of protection to this demographic. The most common product solution has been the introduction of renter specific guaranteed insurability options, enabling clients to increase their cover if their rent goes up. In this insight we looked in more detail at rental GIO options.
INCREASING INCOME PROTECTION WITHOUT UNDERWRITING – HOW DOES THE EXETER’S NEW INCOME FIRST COMPARE?
The Exeter’s new Income First product launched in July included a number of improvements, amongst were changes to the guaranteed insurability options available to policy holders. In this insight we looked in more detail at what those changes are and how the Exeter compares to the rest of the market.
WHO HAS THE MOST GENEROUS GUARANTEED INSURABILTY OPTIONS ON BUSINESS PROTECTION?
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.
INCREASING LIFE AND CRITICAL ILLNESS COVER WITHOUT UNDERWRITING – HOW PROVIDERS COMPARE
Life is never static, so life events can change a client’s personal circumstance, which in turn alters their protection needs. Guaranteed Insurability Options (GIOS) enable the sum assured to be increased without underwriting if certain events happen. This is a positive for clients, as without them clients could potentially face the rigmarole of underwriting on a fairly regular basis. In this article we looked at which life and critical-illness providers offer GIOs, how much cover can increase by and eligibility criteria.
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