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Protection options must be made clear

The government’s decision to add VAT to the price of all food sold at above ambient temperature has confused many.

The so-called pasty tax was introduced to make sure rules on the sale of hot food are fairly applied, but the lack of definition of ambient temperature looks likely to cause unnecessary complexity.

We are aware that protection products can be complex too and that there is a need to address the fact that sales have slipped. But the industry has started to design more simplistic products that are competitively priced and will have greater appeal to a wider market.

It can be a challenge to persuade individuals that having some life or critical illness cover, or income protection is important and that there are affordable options.

Advisers who traditionally sold menu plans may find that by adding simple products to their sales repertoire, they will have a greater chance of making a sale and increasing their customer database.

So whether someone is looking for a complex product or a simple one, there should be something to suit most people’s needs and budget.

Talking to an adviser will help clients put things into perspective and make sure that someone taking out protection for the first time can make an informed decision on what to buy.

And by finding a way to communicate as simply as possible the benefits of the different options available, understanding their protection options should be easier for clients.



Time for unsung benefits of MPPI to be driven home

Mortgage payment protection insurance has been the subject of much speculation about its future, how it stacks up to income protection policies and whether it has a role to play.

Steve Walker

Secured lending went up by 24% in February

A 24% rise in secured loan lending in February has been attributed to mortgage lenders tightening their criteria. Secured lending of £24m was carried out in February, up from £19m in February 2011, figures from the Finance & Leasing Association show. In the three months to February 2012 £67m in secured loans was taken out, […]

Caption Competition

Fluent Money’s Tim Wheeldon gears up for the first leg of the UK Saker Sportscar Challenge

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.


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