Single policy could be best for couples

ED STUART-BROWN, HEAD OF PROTECTION SALES, FRIENDS PROVIDENT
ED STUART-BROWN, HEAD OF PROTECTION SALES, FRIENDS PROVIDENT

According to the Office for National Statistics one in five men and women divorcing in 2008 had been divorced before.

This proportion has almost doubled since 1981 when the figure was 11%.

Some 69% of divorces in 2008 were among couples whose marriage was the first for both parties. Add to this the fact that fewer people are getting hitched and what does this mean for advisers in the protection industry?

Getting married is still a key event that make couples consider life cover or some form of protection insurance and sometimes a joint life policy is recommended.

Getting divorced is often the point when people discover that two single life policies could have been better than a joint life policy.

Even though rates have fallen there were still some 136,000 divorces in England and Wales in 2008. For some advisers this could mean facing commission clawback on protection policies they had sold.

Many policies would have been sold in conjunction with a house purchase, so when couples divorced the joint life policy was likely to be cancelled. But was this the right decision?

As each person may still need protection it makes sense for advisers to recommend two single life policies rather than a joint policy for reasons such as affordability, portability and level of cover. Run some quotes – you may be surprised to see the difference in premiums is minimal for potentially double the cover.