IP: Lump sum from mutuals can 'make good' state pension shortfall

Says AFM chief exec

Adam Saville
clock • 1 min read

'Holloway variant of income protection' can help plug retirement gap

Following our coverage this week highlighting that increases to the state pension age have meant that income protection (IP) policies are lapsing before policyholders reach retirement, chief exec of the Association of Financial Mutuals (AFM) Martin Shaw has pointed to IP lump sum payments as a helpful solution. Available only through mutuals, the ‘Holloway variant' of IP could help make up the ‘shortfall' created by the rising retirement age, he said. "This issue is not of insurers' or intermediaries' making, but it is important that they respond and help customers understand the impl...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Income Protection

Why we still need to talk IP

Why we still need to talk IP

"Increasing sales starts with education"

Matthew Chapman
clock 14 March 2024 • 3 min read
Cirencester Friendly pays out £9.3 million in 2023

Cirencester Friendly pays out £9.3 million in 2023

Nearly half of claims were from Millennials

Jaskeet Briah
clock 14 March 2024 • 2 min read
British Friendly pays out £5m in IP claims

British Friendly pays out £5m in IP claims

Provider pays out 89% of new IP claims in 2023

Cameron Roberts
clock 11 March 2024 • 1 min read