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AMI publishes guide to saving protection policies

  • 20/04/2020
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AMI publishes guide to saving protection policies
The Association of Mortgage Intermediaries (AMI) has published a guide to help brokers support their clients and avoid them losing vital protection cover.


AMI has worked with the Protection Distributors Group (PDG) and the Income Protection Taskforce (IPTF) to produce the guidance which is downloadable below.

The trade body noted that the Covid-19 pandemic is resulting in financial difficulty for many and may lead to clients cancelling their protection insurance direct debits.

Mortgage Solutions revealed earlier this month that LV was the first protection insurer to go public in being willing to offer payment holidays to help its customers.


Support services and underwriting

“While the current crisis is not directly comparable to the financial crisis of 2007/08, many advisers who were working in the industry at that time will recall the same happening and recognise the need to be proactive,” a statement from AMI said.

“Advisers are well placed to engage and educate their clients about the benefits of their existing policies, as well as discussing alternative options to cancellation.

“It is important that clients make an informed decision and not one that is in haste, without due consideration given to how injury and illnesses are still a threat to everyday life.”

Among several key points, the guide highlights that insurers may underwrite policies differently now due to Covid-19, so it may not be so easy to get cover on the same basis without loadings or exclusions.

And it adds a reminder that the client’s policy may provide access to valuable support services.

It also gives brokers a list of options to try in an attempt to keep the policy in place.


Protection needs continue

AMI chief executive Robert Sinclair (pictured) noted that before Covid-19 hit, income protection policy sales were increasing and the Access to Insurance sign posting agreement had made positive strides to help clients with disabilities and medical conditions to find suitable cover.

“It is important that this momentum is not lost, as protection needs continue to exist,” he said.

“The value that intermediaries add is crucial to ensuring clients realise the far-reaching effects that cancelling cover could have on their lives.

“Many intermediaries are already contacting clients and generating discussion, but AMI, PDG and IPTF hope that this guide will be a useful tool,” he added.


You can download the guide here.





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