Nevertheless, task-based definitions should not be a problem if explained by advisers at the outset in a way that adequately manages client expectations. This is also true of many other aspects of IP, from the length of the deferred period to any exclusions that may be imposed at outset by underwriters. So I will be watching with interest when a Treasury-approved simplified version of IP designed to be sold without advice comes to life. IP and professional advice have up until now gone hand in hand, from the need to establish whether someone is already in an employer-paid scheme to selecting a suitable cover level and provider and, if the government remains unwilling to play the game, explaining the state benefits situation.
Ultimate simplification today comes from the provision of excellent professional advice provided with IP products. Mr da Vinci’s musings took place centuries before IP was invented but if he had been more contemporary, maybe he would have conceded that ultimate sophistication can come from the new simplified IP product as well. Let us wait and see.
Jennifer Gilchrist is senior product development manager for Bright Grey and Scottish Provident
Key Points
There is still hope that a simplified version of individual IP will be included in a subsequent suite of products that carries a Treasury seal of approval
The initial proposals for a simplified IP product appeared in the Sergeant Review’s interim report published in July 2012
Task-based definitions should not be a problem if explained by advisers at outset in a way that adequately manages client expectations
Simply put
The first set of simple financial products from the Sergeant Review of Simple Financial Products
• Easy access savings account.
• 30-day notice savings account.
• Regular savings account.
• Fixed-term life insurance.
