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Protection news
Parents leave themselves unprotected
The amount of debt amongst maintain a comfortable standard This reliance on two incomes to dependent children is worrying.
parents with dependent kids is of living. run the family home means mil- People are leaving themselves
increasing dramatically, leaving The average household with lions of households are leaving exposed to a lack of income
them at risk of being unable to dependent children has £91,648 themselves at risk of being should anything happen to the
survive financially should any- still outstanding on their mort- unable to survive financially if main breadwinner, and large per-
thing happen. gage compared to £88,500 last one of the bread winners become sonal debt to repay on top of this
New research from the Scottish year. Those with no children have unable to work as a result of crit- could make things even more dif-
Widows Protection Report significantly less mortgage debt, ical illness, death, disability or ficult. Families need to make sure
reveals three out of five (60 per with an average debt of £73,293, due to an accident. Furthermore, they protect themselves financial-
cent) households with dependent and have managed to reduce it the research shows 62 per cent of ly so if they do get into difficul-
children are reliant on two or from £77,500 last year. When it Brits have not protected them- ties they have the vital back up in
more incomes to make ends comes to short term debt, the selves for the long term should place to look after their families
meet, and with an increasing average household with depend- the worst happen and they lose and loved ones. If households do
amount of personal debt, things ent children has carried over their household's main income. not have sufficient protection,
are unlikely to get better for these £8,653 over the last 3 months Commenting on the findings, such as Life cover and critical ill-
families. Overall, 44 per cent of compared to an average of £7003 Scottish Widows' protection ness cover for any of these cir-
UK households rely on more for those with no dependant director Clive Allison said: "The cumstances, many could be left
than one breadwinner to children. increase of debt for those with struggling."
FP emphasises importance of trusts
Friends Provident has launched a seminars focus on the current bring all sales support material loved ones, with the trust
new trust toolkit to help advisers trust market place and explain together in one place for the allowing for the payment of
ensure that trusts are high on the how to set up trusts as well as adviser. Trusts offer important the proceeds to be made speedily.
agenda for their customers to outlining the benefits for both benefits to advisers by reducing The right money, to the right
consider. advisers and clients. lapse rates, improving retention, people at the right time. They
The new toolkit, launched Advisers wanting to view these and generating referral are an undersold feature of life
today, gives advisers access to a should visit the trust toolkit on opportunities. cover and life or earlier critical
variety of tools, tips and the adviser website at ”A recent study commissioned illness plans, but by providing
techniques to enhance their www.friendsprovident.com/ by Friends Provident showed advisers with more bite-sized
trust-selling skills. adviser. that nearly 40 per cent of people chunks of support, they will
As part of the toolkit, advisers Ed Stuart-Brown, head of who had Life cover did not know have the tools to help ensure
can access three pre-recorded protection sales, said: “Our what a trust was. The proper use their clients are able to make
online seminars and download a previous toolkits have been a of a trust ensures that the policy well-informed decisions about
range of support material. The great success and have helped to pays the benefits to the clients trusts.”
Bupa extends IP definitions
Bupa Individual Protection has based upon their specific occupa- clients expect. An own occupa- sition in the coming months,"
added more than 130 own occu- tion. tion definition gives customers he said.
pation definitions to its individ- Steve Casey head of product peace of mind when they come Bupa's income protection
ual income protection proposi- development for Bupa Individual to claim and enables them to product has achieved five star
tion including dentists, surgeons protection said: "These changes fully understand the criteria by rating from Defaqto, a leading
and college lecturers. are part of our commitment to which they will be assessed. independent research company,
These professionals will now enable intermediaries to offer the "We will be introducing fur- which rates products across the
be able to protect their income income protection coverage their ther enhancements to our propo- whole market.
February 2010 Mortgage Introducer www.mortgageintroducer.com
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