Advisers are missing out on the opportunities to sell income protection (IP) presented by the new fit note and Welfare Reform Act, research suggests.
Only 17% of IFAs address the WRA when discussing IP and just 20% are using the fit note to their advantage, according to a study from Friends Provident and Assureweb.
However, perhaps not coincidentally, the report also found that eight out of ten advisers (80.6%) want help selling IP, more than in any other area.
As a result the provider has launched an online welfare reform seminar for intermediaries, which it says will highlight the stark realities of relying on the State and provide useful IP selling techniques.
The seminar will:
- Provide further detail on the State benefit system so advisers can confidently discuss benefit levels with their clients;
- Provide angles on how to sell income protection;
- Give access to a range of marketing support material, including letter templates and sales aids.
As previously discussed by COVER, the new Employment and Support Allowance and fit notes are part of Government aims to cut welfare and benefits spending, by getting more people back to work, although some have criticised the inititive.
Ed Stuart-Brown, head of protection at Friends Provident believes one of the most commonly cited barriers to selling IP is the clients' perception that the State will always provide for them.
"Unfortunately this ceased to be the case when the Government introduced the Employment and Support Allowance in 2008," he says.
"It is now much harder to claim sickness benefits and over two thirds of claimants are unsuccessful.
"The seminar highlights the fact that relying on the State is not the best option and provides advisers with the knowledge to encourage their clients to protect themselves by purchasing income protection," he adds.
The seminar is available at www.friendsprovident.com/iptoolkit/ and advisers who watch it are eligible for CPD points.
