Increasing protection insurance without underwriting
24 September 2021
27 September 2021
In this ‘four 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.
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 life events, without undergoing further medical underwriting. In this ‘four 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
- Increasing income protection without underwriting – How does the Exeter’s new income first compare?
- Who has the most generous guaranteed insurability options on business protection?
- Increasing life and critical illness cover without underwriting – 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.
The Exeter’s new Income First product launched in July included a number of improvements, amongst these were changes to the guaranteed insurability options available to policyholders. In this insight we looked in more detail at what those changes are and how the Exeter compares to the rest of the market.
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.
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.
Voting and entry submissions close on Friday 3rd September and the awards luncheon will take place in London on Friday 22nd October 2021.
Look out for future “Everything you need to know” articles where each week we will cover a different topic and provide you with the information you need to know to discuss the topics with your clients.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.