Advisers need to be aware of how applications from people with a recent history of back pain are as...
Advisers need to be aware of how applications from people with a recent history of back pain are assessed by underwriters, if they want to reduce the amount of applications rejected by providers, writes Kirstie Redford.
The advice comes from Scottish Equitable which claims that back disorders are one of the most problematic areas for IFAs to judge ' especially when clients are applying for income protection and permanent total disability cover.
The provider has highlighted that annually there are 12 million GP visits and 1.6 million outpatient appointments for back problems. In 1998, there were 120 million days' sickness absence due to lower back pain, with 60% of adults suffering from back pain at least once a year.
Matt Rann, head of underwriting at Scottish Equitable, said: 'Back disorders rarely affect life expectancy ' but are a major cause of disability. This is an area where IFAs often have queries, particularly when the client is applying for income protection and permanent and total disability cover.
Different life offices have different attitudes to back pain. Some will impose a blanket exclusion of any claims for back problems if there is a history of back pain. Others will offer full cover, but charge an extra premium to cover the increased risk. For IFAs, managing client expectations is crucial. They need to understand the issues involved in the underwriting process to provide a high quality service.'
l The next edition of Scottish Equitable's newsletter Underwriting Today aims to help advisers understand the issues surrounding back pain in clients who are taking out protection products. For copies, visit www.scottishequitable.co.uk/protect or telephone 0845 600 1402.
