With longevity increasing, we are living with ill health for longer, so it is expected that around 60 per cent of people over 65 will need some kind of care and there is growing evidence that conditions like Alzheimer’s disease, Parkinsons and dementia could be linked to obesity and lifestyle.
The Vitality option gives people lifelong cover that pays out on death, or if they suffer an illness which leaves them permanently unable of looking after themselves with the remaining cover payable on death.
“Addressing the needs of the ageing population and the real fear that clients have about paying for care costs is going to be key”, said Mr Groves at LightBlue.
“If your client is diagnosed with a medical condition that means they can no longer live independently or suffer from severe cognitive impairments, care cover allows them to access a proportion of the sum assured to help meet those costs.”
Barry Pappin, from advisory firm Vita, added: “Care cover is a hugely positive development that could help to significantly grow the protection market.
“As life expectancy continues to improve more people will need care services in later life, although many still believe the government will provide this. By continuing to innovate and launch new products our industry is well placed to solve this problem.”
Seven Families
The Seven Families project has seen the industry come together to promote the importance of income protection like never before.
The campaign, led by Disability Rights UK and the Income Protection Task Force, follows the stories of seven families in the UK who have lost an income due to illness or disability, and have been put in the position they would have been had they taken out income protection.
Recent Seven Families research showed when addressing clients protection needs, 70 per cent of advisers asked said they had found the campaign useful.
Emma Thomson, of protection specialist LifeSearch, said: “Seven Families uniquely did a huge amount of good for our industry in 2015; raising awareness, highlighting more than just the monetary benefits our products provide and perhaps most significantly proving that it is possible to work together collectively for the common good.”
Also in agreement that Seven Families has proved important in 2015 is Tom Connor, at adviser Drewberry. “I really feel that advisers are starting to embed income protection into their service proposition as a core product, and that is down to the coverage Seven Families has achieved.
“It has created a real buzz around IP, and rightly so.”
We hope to see the mass market promotion of protection continuing into 2016.
