Maximum benefits calculator simplified and updated for Aviva For Advisers
Aviva has increased the amount of earnings an advised client can cover with its ‘Income Protection+' policy.
The new benefit calculation will be 65% of the first £60,000 of customers' gross earning, plus 45% of any gross earnings above £60,000. This was previously 65% of the first £10k, plus 55% of £10-£90k plus 45% thereafter.
Aviva said the change will also potentially present advisers with an added opportunity to review the level of cover for clients.
The maximum benefit available under this policy will still be £20,000 per month (£240,000 per annum).
It is expected that advisers will see Aviva quotes more often on portals for clients needing either single or multi-benefit income protection products.
Mark Cracknell, head of protection distribution at Aviva, said: "We are always looking for ways to remove complexity for advisers and offer choice. With the changes we have made to ‘Income Protection+', we are reaffirming our commitment to the adviser market by making income protection calculations much simpler and enabling adviser to protect more of their client's earnings."
LifeSearch's Marie Bedding, said the changes are "very positive". "As brokers, we push the need for income protection, so we support anything that providers will introduce to make the product simpler."
Aviva is also updating its 'income protection maximum benefit calculator and the 'maximum benefit dual deferred calculator' as part of the change.
It launched ‘Income Protection+' in 2016 and in 2018 it paid out £38.1m to 4,049 individuals with the policy.
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