Welfare reform is a chance to sell cover

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

Measures to achieve savings from welfare benefits, including radical plans to reform the incapacity benefit system, have been outlined by the coalition government.

All 2.6 million people claiming incapacity benefit will be reassessed and those regarded as being capable of work will be moved on to Jobseeker’s Allowance, which is less generous.

Many people mistakenly believe that if they can’t work due to accident or sickness the state will provide for them.

Now is the time for us to re-educate customers about the realities of the level of support that is actually available, both now and in the future.
Even under the current incapacity benefit system, most individuals would not be able to rely on state benefits alone to maintain their standard of living.

Current basic Employment and Support Allowance is only £65.45 a week.

With the average weekly income standing at £489 a week, could the majority of your clients survive on such a significant drop?

We should be under no illusion that things are only going to get tougher under the new government.

At a time when we are being flooded with press coverage on funding cutbacks and reducing state provision, I urge advisers to strike while the iron’s hot.

Speak to your customers about the benefits of income protection and the financial peace of mind that such a product will provide in times of such uncertainty.