Lets talk Income Protection Learning objectives Understanding the - - PowerPoint PPT Presentation

Legal & General Let’s talk Income Protection

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Learning objectives

Understanding the language of protection, what this this means to clients and how to position a holistic conversation Highlight how utilising key tools, calculators and statistics can help you create the need for income protection Review the key benefits of L&G’s income protection policy to bring to life how these plans enhance your clients life

Mind your language

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Source : cover magazine 15th March 2019

Is it a product led conversation?

IP Low cost IP Family Income Benefit Critical illness cover Life Do you stop here?

Holistic protection advice

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Life Critical illness cover Family income benefit Low cost IP IP Change your process? Start with Income protection?

Is it a product led conversation?

Holistic protection advice

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Income protection Protects your greatest asset Your ability to earn an income When sickness or injury stops you working Pays a regular income

300 2400

Basic quality of living costs, TV license, childcare, savings etc.

Income pays for

Mortgage payments

• ver 25 years

Must pay bills – utilities, food, credit cards, insurance loans, travel, etc.

1500

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£572.60

Weekly cost of running an average family home

£141.40

Food and transport is the biggest spend..

37%

Primary breadwinners with any Protection…

Family spending in the UK

Source Offfice national statistics

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Less than 5% 1 in 10 Over 33% Around a quarter

3 4 2 1 1 in 10

Source: Swiss Re Term and Health Watch 2018 Source: Mintel Report 2017

How many people have their income protected?

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Source Lilkley hood of event before retirement **LV risk calculator and , National Lottery UK Lotto* & OFNS

Lottery jackpot win * Off work long term sick** Survive a Critical illness** Death Happy to take a risk on the lottery with little chance of a payout UK average spend £2.90 a week on gambling ****

45M / 1 3 / 1 4 / 1 Odds On

Take a Punt bookmaker

Todays odds

Die before retirement date** 6 / 1

Would you gamble

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Income protection claims most likely

Critical illness

• 1. Cancer

63.8%

• 2. Heart Attack

10.1%

• 3. Stroke

6.4%

• 4. Multiple Sclerosis

5.1%

• 5. Total & permanent

3.6% Disability

Income protection

• 1. Musculoskeletal

35.6%

• 2. Mental Health

21.5%

• 3. Cancer

14.1%

• 4. Neurological

6.7%

• 5. Gastro-intestinal

5.9%

Income protection

I don’t need to protect my income

I

Not going to happen to me

N

Can I take it away to consider

C

Off work – never going to happen

O

My savings will support me

M

Employer will look after me

E

What reasons do customers give for NOT protecting their income?

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Income Protection: Sales Tools

L&G Online Tools to help IP Conversations:

• Budget Planner
• Deadline to Breadline Calculator
• Benefit and Stepped Benefit Calculator
• Employee Benefits Checklist
• Occupation Classes Guide

External Sites of use:

The Money Charity Income Protection Task Force PERCY – The Income Protection Calculator

Nurse support services

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Second Medical Opinion Serious illness, disability

• r bereavement support

Mental health support Carer support Help at Home Eldercare

Legal and General rehabilitation support

* Terms and conditions apply

Early intervention from day one Free for all new and existing customers Immediate access to healthcare professionals Full rehabilitation assessments Ongoing reviews Appropriate treatment advice Treatments costs included*

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Inc Income

• me pr

prote

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ction

Feature Overview Cover Amount The maximum monthly benefit is £20,000 per month (60% of £60k, 50% £60k+) Product Types Low Cost (2 year) Product or Full Term Product Deferred Periods Clients can choose between 4, 13, 26 or 52 weeks deferred period . Benefit payments are made a month after this (double step benefits on Full Product only) NHS: Doctors, Nurses and Surgeons We can now match the varying sick pay structure for a client who is an NHS Surgeon, Doctor or Nurse. 26/52 week double stepped benefit. Income Guarantee for NHS Doctors, Nurses and Surgeons New limit of £3,000 for these specific NHS workers. All other occupations have £1,500 built in automatically Nurse Support Services NSS is now available on all new Income Protection plans Rehabilitation Support Early intervention to support customers on the road to recovery from day one

Inc Income

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prote

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ction

New Proposition updates being released 17th Feb…

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Ren ental tal pr prote

• tectio

ction p n plan lan

The bespoke proposition will aim to deliver a simple long term product that helps financially support tenants so they can maintain their home and lifestyle in the event of being unable to work through sickness, ill health or death, depending on the plan chosen. Each plan will provide flexibility by:

• Allowing an increase in rental costs as a reason for increasing their level of cover/benefit.

Eligibility criteria applies.

INCOME PROTECTION LIFE COVER LIFE & CRITICAL ILLNESS BENEFIT

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2018 Claims No claims notification period

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Adviser Support

Adviser Guides Updated Adviser Centre Animation Videos Products webinars. Register at: www.legalandgeneral.com/adviser

Legal & General Let’s talk Income Protection