Income protection insurance sales will increase in importance as a result of FSA scrutiny and the Spending Review the Income Protection Task Force (IPTF) has said.
The IPTF said state benefits for those unable to work may be more restricted in future and the FSA is aware of the situation.
Clive Waller, co-chairman of the IPTF said, "The FSA have already expressed concern that advisers are not offering their clients the full range of protection policies (CP09/31 4 16). Few advisers are aware of the FSA's comments on protection in the RDR. The FSA have promised increased scrutiny in this area."
Referring to a forthcoming White Paper on benefit payments, Peter Le Beau, the other co-chairman of the Income Protection Task Force commented: "It seems likely from the Chancellor's comments that we will see reductions in entitlement to a number of welfare benefits.
"If this does occur it is more important than ever that advisers consider the need for income protection insurance. We await the detail of the White Paper with great interest and it is important that advisers do so as well."
