What advisers can do to support income protection claimants
Successfully recommending income protection (IP) to a client is, in many ways, a job well done for advisers.
That client will have an income to fall back on if they can’t work due to illness or an accident. They could also access other benefits, such as wellbeing support and rehabilitation services that can help them return to work.
But when a client needs to claim on their IP policy, what can advisers do to help?
Being there
One of the most important ways an adviser can support clients during the IP claims process is by being there to guide them through it.
As industry commentators point out, some advisers may not see the claims process as part of their remit. But others feel very strongly that, if an adviser has sold an IP policy, they should stay the course and help the client with their claim.
“Advisers should be there for the client to the end,” says Cover my Bubble founder Emma Astley.
“Saying they don’t have the support or the admin in their team is a cop out. You’ve been paid for the whole journey, so provide the customer service all the way through.”
In Astley’s view, supporting clients through the claims process is not a one-way street – it can also be beneficial to the adviser.
“That’s how you will get recognition in the industry and referrals. Insurers will want to work with you and clients will recommend you. Our work on claims reaches a lot of people.”
Other commentators hold similar views. Protection Distributors Group board member Emma Thomson says some advisers will proactively tell clients at the start that they will support them at the point of claim.
“They have taken the view to support individual claims as part of the overall support. It helps the adviser to cement the client relationship and helps the business, as you’re not just going in there doing the sale,” she says.
“At the same time, it helps to secure the sale, as clients know they’ll get ongoing customer service.”
Thomson adds some advisers don’t get involved with claims at all unless the client asks them but would like to see more getting proactive.
Getting in early
In practical terms, advisers can make clients aware that the earlier the insurer is notified of their claim, the better.
Thomson points out that, while it is common for insurers to have a deferred period of at least four weeks before a client can claim, advisers can get the ball rolling before this by working on a letter to the insurer. This could mean they have early access to intervention and rehabilitation services from the insurer.
“The insurer could offer additional support to help the client get back into work quicker,” says Thomson.
“Let the insurer know if there is additional support they can provide and start the process, so, when the client reaches the end of the deferred period, the money can start coming in.”
Clients who are not earning will not want to wait any longer than necessary for their IP policy to kick in, so anything advisers can do to help speed up the process will be welcome.
“Obtain as much information as you can, as that will help the client through the claims form,” says Astley. “They will be wanting to get paid quickly.”
Thomson suggests asking the client what medical information and letters they already have, such as a letter that confirms their diagnosis.
“Don’t just wait, as GPs are under pressure and a lot of surgeries don’t prioritise people waiting for claims to get paid,” she says.
Managing expectations
Delays are part and parcel of the claims process, so a key part of an adviser’s role is to manage client expectations.
“IP claims involve a lot of processes and not all insurers have got it bob-on,” says Astley.
She has found some are shoddy in terms of miscommunicating time scales, so advisers are often left to chase up GP reports on behalf of clients who don’t understand how it works.
According to LifeSearch financial adviser Lisa Kelly – a specialist in claims – dealing with claims as an adviser is all about meeting and managing client expectations. But it can sometimes be difficult to get across to clients the quirks of the claims process and how long it can take.
For example, one client emailed Kelly to see if there was any update on their claim, despite being told the insurer is working on a 13-day turnaround, so there would be no more news within that time.
“You can feel a bit tugged – clients can call three or four times a day,” she says. But keeping the lines of communication open is important, so clients know they have someone to talk to.
One IP claimant Kelly spoke to recently nearly drove off a cliff because he had bills coming in.
“I had to talk him down. I did a counselling course, which helps me speak to people in difficult situations and I have a lot of experience,” she says. “The chap went back home and called his GP, like I asked him to. But I was worried about him.”
When Kelly spoke to the client shortly afterwards, he was his usual self. “He was as right as rain,” she says. “It had just been the wrong day and the wrong time.”
