With children living at home longer and buying their own homes later in life, family protection may be needed longer than expected. The neat model of protection needs is being replaced by a much more diversified picture. And that is why a whole-of-life plan could prove invaluable because the client cannot choose the ‘wrong term’.
With this type of plan they have cover in place for their whole life so they do not need to guess when their plan should end as they do for term assurance. Its flexibility also means that the children can continue to pay the premiums if the parents are no longer able to do so.
Business cover
Whole-of–life cover is not limited to just personal protection. Business owners can also use it to protect current liabilities and future ones as the needs of the business change. And once the client has retired, they can take over the plan providing them with protection in their retirement.
Removing the investment element means more intermediaries now have the opportunity to recommend whole-of-life products. Unlike selling unit linked plans, they don’t need to be regulated by the Financial Services Authority (FSA) to conduct investment business. If ICOB-registered intermediaries are not already in this market, there is no stopping them from appreciating the very real flexibility offered by whole of life plans.
With some forward planning and financial advice, people can prepare for the future. And with more emphasis on holistic financial planning the new multi-usage whole of life could provide intermediaries with valuable new sales opportunities.
Jennifer Gilchrist is senior product development manager at Scottish Provident
