He opines: "The consumer mindset determines whether they will opt for comprehensive cover or a budget plan."
In agreement is Peter Hamilton, head of retail propositions for Zurich: "It inevitably depends on personal circumstances and budget. The shorter-term plans are cheaper and simpler, but it is clear that if someone can afford full income protection, the overall level of cover is more comprehensive."
Ms Thomson believes a hybrid approach could work best: "A more comprehensive option that specifically covers rent and/or mortgage payments would appeal to consumers who have more time to get advice, or have health conditions that need to be covered.
"I think this type of product would be good for our market and there is scope to design different options to meet differing needs."
But as always, the adviser's role in determining what is best for the consumer is a vital one. Ms Boroianu-Omura adds: "The ABI would always encourage consumers to seek financial advice before purchasing any income protection product, to ensure they get the appropriate cover for their needs."
This is becoming all the more important, as according to Andy Coles, development director for Lutine Insurance, the aggregators are becoming the "fly in the ointment" with short-term protection, as they are taking up to 40 per cent commission to "roll to the customers at renewal".
He adds: "This product sits best with IFAs who can ensure the level of cover is appropriate to the customers' changing commitments and income, rather than screwing the price to the floor on a non-advised basis."
simoney.kyriakou@ft.com
