A new protection adviser has launched aiming to target small and medium sized enterprises.
Story from FT.com
Specialists4Protection, a trading style of Pi Financial Ltd, is targeting SMEs to help them ensure their staff have adequate life, critical illness and health insurance.
Paul Litster, managing director of Specialists4Protection.co.uk, said his company’s research revealed only 31 per cent of people claim to have life insurance or death in service benefit through work.
Mr Litser said: “It is alarming to see how many people who should have life insurance don’t, but also how underinsured most people with this cover are.
“If you have dependents, having adequate life insurance is one of the most important financial decisions you will ever make, but many people tend to just pluck a figure from the air when deciding on their level of cover without working out what their loved ones would need should they die.
“Many people rely on financial advisers to help ensure they have adequate cover, but with fewer operating in this market the chances of people ending up with the wrong type and level of cover increases.
“One of the best ways to tackle this problem is in the workplace, so we are targeting SMEs who want to help ensure their staff is adequately covered.”
The company warns that of those people with life insurance, the vast majority are hugely under-insured.
Around 23 per cent of those with this cover only have the equivalent of one year’s salary, and a further 19 per cent have two years’ income.
|Level of life insurance cover||Percentage of people with life insurance who have this level of cover|
|One year’s salary||23%|
|Two years’ salary||19%|
|Between three and five years’ salary||30%|
|Between six and 10 years’ salary||17%|
|Between 11 and 15 years’ salary||5%|
|Between 16 and 20 years’ salary||3%|
|Over 20 years of my salary||3%|
Kevin Carr, chief executive of Protection Review, said: “Anything that helps more families to be better protected should be welcomed by the market.
“The good thing here is that it looks like the company is independent and keen to give advice (as opposed to being non-advised as so many other firms are).
“There is not anything particularly new about the model from what I can tell and there are lots of independent advice firms out there specialising in protection. But there’s room for more, especially with the focus on SMEs and business protection.”
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Quotes shown are for a 40 year old male who doesn’t smoke. Policy is £100,000 life insurance cover for ten years with a fixed premium. Example is for illustrative purposes only and was correct on 21/11/2016.
The most common form of protection, ordinary term life cover pays a lump sum to your family if you die within a certain time-frame. Most policies will also pay-out if you’re diagnosed with a terminal illness and have less than twelve months to live
Critical Illness Cover provides a cash lump sum if you suffer from a range of serious conditions within a set time-frame. The money is normally used to pay the bills and provide financial security while you’re on the road back to health
If something serious happens to stop you working - for months, years, or even for life – you’ll want to know you have financial security and that the bills are paid. Income Protection gives you just that, paying a percentage of your income all the time you’re unable to work.
The NHS is groaning under the weight of the UK obesity crisis and newer, more effective medical treatments for a range of illnesses often aren’t available. Private medical cover makes ‘going private’ much more affordable – giving you access to more treatments, shorter waiting lists, and first-class care.
Most company directors are savvy enough to have life insurance, but very few realise they can save up to 53% by taking advantage of a Relevant Life plan.
Group Life and / or Health Cover is the most cost-effective way to provide peace of mind and financial security for the families of your employees.
Key Person Insurance - often called Key Man Cover - is an insurance policy bought and owned by a business to protect its own interests. Cover is provided in the event that an important staff member is suddenly unable to work through critical illness and/or death.
Shareholder Protection Insurance is designed to give you peace of mind in the event that a shareholder in a Limited Liability Company, a member of a Limited Liability Partnership (LLP), or a partner in a partnership dies or is diagnosed as critically ill.
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