Income Protection

Aegon 'enhances accesses to income protection'

Aegon Scottish Equitable has enhanced its access to such products as income protection, critical illness cover and standard or non-standard life, the company has announced.

The insurer has improved its online protection application process to allow advisers to obtain immediate cover for clients regarding products such as income protection insurance.

It has also extended the time period for returning a signed protection declaration. Cases submitted after April 30th 2007 will have a 60-day time period, an increase from the previous 30-day limit.

Rod McKie, head of individual protection marketing at Aegon, commented: "We have made these changes to make the whole process of applying for protection quicker and smoother.

"A policy can now go on-risk immediately - subject to acceptance of course - from the requested start date."

Clients will still need to sign their declaration to confirm they have checked it, he added. Aegon will give people an exact timeframe for returning their declarations for income protection or other insurance.

Mr McKie remarked that this signature protects "the client, the adviser and ourselves" and will "significantly improve" the time needed to process declarations.

Aegon Group is one of the largest life insurance firms in the world.

Cover Not Meeting Costs

At least one eighth of the population was ill or injured for three weeks or more last year. Although 12% of people were unable to work between August 2006 and July 2007 50% of them said they would not manage financially if they were unable to work through illness or injury.

Woman mainly became carers of the sick and disabled which obviously affected their income.

Still private medical and income protection insurance remain a minority purchase with consumers uninterested in these products.

Premiums are now more affordable and many more businesses were subscribing.

It appears that the sale of thee products has dropped over the last few years.

Income Protection

Which? states that insurers must encourage employers to offer income protection as an added benefit to employees.

Very few employers offer this though it is considered to be more useful than private medical insurance that is often offered to employees. This is a better deal than private medical insurance as employees are already covered by the National Health Service.

Some employers think that it would not attract as many employees but it is thought that this would be down to a lack of knowledge rather than not wanting it as a benefit.

The market has seen a growth in the product but ties about the age discrimination changes have hampered it.

Hopefully this will change soon.

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