Be a guide in the jargon wilderness
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ED STUART-BROWN: HEAD OF PROTECTION SALES, FRIENDS PROVIDENT
Do you ever find your head spinning with all the abbreviations flying around our industry? ASU, MPPI, IP, CIC, DTA, LTA - the list goes on.
It seems that as we have provided more products and services we have got lost in a wilderness of acronyms and jargon.
A quick Google search reveals the lack of consistency in the language we use.
If you type in ’income protection’ a number of accident, sickness and unemployment and payment protection insurance providers also appear. It’s little wonder that there is consumer confusion about what protection products do.
The amount of IP held in the UK is only a third of what consumers believe they have, showing they do not understand IP and are mistaking other products they have for it.
We need to ensure consumers are aware of the differences between products. For example, confusing ASU with IP means clients’ expectations of a payout under ASU will not be met because they thought they had IP.
Are we spelling out the differences to clients and do they understand the likelihood of sickness crippling their finances?
With IP, clients get a product for the long term. They may pay less for ASU cover but they will also receive less.
We must ensure clients don’t end up lost in the jargon wilderness because if they do it is their advisers they will turn to, either for clarity or redress.
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